Bellevue votes to extend vehicle registration fee

BELLEVUE – During its May 14 meeting, the Bellevue Village Board voted to extend the current vehicle registration fee by two years.

“The original vehicle registration fee was enacted in 2019 and the intent was to basically provide a funding resource to help offset assessments and road-related projects with the end goal of reducing off of the vehicle registration fee when a transportation utility could be enacted. Well, as we all know, and we've talked about multiple times during budget CIP times, the transportation utility is not allowed in Wisconsin. Several communities tried it. They got sued. They lost it. Some communities tried doing taxation through it. Lost. Didn't work. It was appealed, and the Supreme Court chose not to hear the case, which means that it’s dead, so it's not allowed in the village,” Bellevue Village Administrator Ben Krumenauer told the board.

“So, many communities that have vehicle registration fees opted to keep them or continue them or enhance them. And in the case of Bellevue, that's what we did. We said, ‘So that's no longer on the table. How can we use the vehicle registration fee?’

“We've done some updates, we've done some two-year extensions, and most recently, in December of this year we opted to increase our revenue — from $20 per vehicle up to $25 per vehicle — and then also allowed it to use for benefits, what we call, life-extending roadwork,”

In June 2021, the board approved a 24-month extension to the program with a new expiration date of Dec. 31, 2023.

In January 2023, the board reviewed an ordinance proposal that would remove the expiration date and enact a permanent status for the fee — that action failed.

In June 2023, a two-year extension to the 2019 ordinance was approved — which expires Dec. 31, 2025.

Krumenauer said that there are 49 municipalities in the state that have enacted a vehicle registration fee (VRF).

“The average fee has also increased from $22.08 in 2023 to $23.86 today. Counties participating in the VRF program remained at 13 with a new 2025 average fee of $24.08 (up from $22.15 in 2023),” a memo from Krumenauer to the board stated.

“The program is anticipated to collect $310,000 in 2025. Current policy states that if an assessment is greater than the allowable cap set through policy each year, the village board can authorize a disbursement of funds to offset qualified properties. In 2024, the Board also authorized a portion of the funds collected to help support road longevity and maintenance projects. Given the recent Wisconsin court cases that prohibit the creation of a Transportation Utility, staff highly recommend the  continuation of this road improvement funding mechanism. The benefits of the program far outweigh any negative considerations.

“Given the overall comparable rates and similar uses, it would be appropriate to maintain the current program as it stands. For assessment relief purposes, the fund continues to function as designed.”

The motion passed 4-1, with Trustee Dave Kaster the lone "no" vote.

The fee is now set to expire on Dec. 31, 2027.