Question: I’ve heard neighboring towns are trying to charge a transportation utility fee. My town’s board has brought it up, and I’m worried about the impact on my school. Can they charge us a transportation utility fee?
Answer: Many municipalities have just recently paused their efforts in charging a transportation utility fee (TUF) because of the Wisconsin Institute for Law and Liberty’s successful Wisconsin Supreme Court case against the creation of a transportation utility fee in Buchanan.
There are several ways to calculate a TUF, but it’s important to note that it’s not a wheel tax. A TUF is when the city charges a fee based on a calculation of variables related to road usage and occupied space.
Most commonly, the municipality would calculate the number of anticipated weekly trips against a building’s square footage and charge the owner the estimated weekly trip rate. Small homes would pay much less than a public space like a church or school.
TUFs are becoming more popular as municipalities face aging transportation infrastructure with declining tax bases. Even though towns and cities are rethinking TUFs, infrastructure repairs are still needed. Be prepared for your municipality to attempt charging a TUF or other fees in the future.
