{"id":11137,"date":"2024-06-10T20:39:34","date_gmt":"2024-06-10T20:39:34","guid":{"rendered":"https:\/\/wifamily.news\/?p=11137"},"modified":"2024-06-10T21:06:16","modified_gmt":"2024-06-10T21:06:16","slug":"wills-win-in-transportation-utility-fee-case-saves-taxpayers-millions-statewide","status":"publish","type":"post","link":"https:\/\/wifamily.news\/?p=11137","title":{"rendered":"WILL\u2019s Win in Transportation Utility Fee Case Saves Taxpayers Millions Statewide"},"content":{"rendered":"

This post originally appeared at https:\/\/will-law.org\/wills-win-in-transportation-utility-fee-case-saves-taxpayers-millions-statewid\/<\/a><\/p>\n

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6.10.24<\/p>\n

In Wisconsin, local expenses for road maintenance are primarily covered by a combination of property taxes, which must adhere to strict state requirements, and state aid. However, municipalities across Wisconsin began trying to use a new method of funding road maintenance, called Transportation Utilities. These utilities charge residents of municipalities a Transportation Utility Fee (TUF)<\/span>,<\/span> which is in an amount calculated based on how much their particular type of property is expected to generate road usage. For example, a warehouse would use the roads more, and have a higher utility fee, than a single-family home.\u00a0<\/span>\u00a0<\/span><\/p>\n

Despite this mechanism being called a fee, it is really an unlawful tax. There is nothing in Wisconsin state law which authorizes municipalities to charge a road use fee. Instead, roads are meant to be financed primarily through property taxes which have strict levy limits and uniformity requirements.\u00a0<\/span>\u00a0<\/span><\/p>\n

The Town of Buchanan was one of the Wisconsin municipalities using a TUF to illegally get around their property tax limitations.<\/span>\u00a0<\/span>\u00a0<\/span><\/p>\n

In September 2021, WILL initiated legal action in Outagamie County Circuit Court, seeking a ruling that the Town of Buchanan\u2019s transportation utility fee was unlawful and requesting an injunction to halt its imposition, enforcement, or collection. Judge Mark McGinnis of the Outagamie County Circuit Court ruled during a summary judgment hearing on June 6, 2022, that the transportation utility fee breached the state\u2019s tax limits.\u00a0<\/span>\u00a0<\/span><\/p>\n

Despite the Town\u2019s appeal, the Wisconsin Supreme Court unanimously struck down the fee as an unlawful tax.<\/span>\u00a0<\/span><\/p>\n

This case has already made big waves as it was used by the Court of Appeals to overrule a TUF in the Village of Pewaukee and demonstrates how our work continuously defends taxpayers around the state.\u00a0<\/span>\u00a0<\/span><\/p>\n

To better measure the impact of our court win, we collected information from municipalities across the state that either considered or implemented a TUF (or something substantially similar). By looking at media reporting and public records, we found 17 municipalities that had either implemented or strongly considered implementing some form of a TUF and have estimated the potential<\/span> annual taxpayer savings of this win.<\/span>\u00a0<\/span><\/p>\n