A wheel tax is a vehicle registration fee commonly used on

automobiles A car or automobile is a motor vehicle with wheels. Most definitions of ''cars'' say that they run primarily on roads, seat one to eight people, have four wheels, and mainly transport people instead of goods. The year 1886 is regarded as ...

generally less than 8000 pounds in the

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...

by some cities and counties. The problem that a wheel tax attempts to solve is that many people come into a community from outside to work and, as a result, use the community's roads, water, sewer, and so forth, but pay no taxes into the community as a result of living outside of the municipality. It is an example of a problem in governance sometimes called the

free rider problem In the social sciences, the free-rider problem is a type of market failure that occurs when those who benefit from resources, public goods (such as public roads or public library), or services of a communal nature do not pay for them or under-p ...

. The tax is charged to motorists based upon the vehicle's weight, and it is often collected at the time of annual vehicle registration renewals. A proposed wheel tax in Omaha was $50 per year. Proponents have argued that wheel taxes are fair since persons who drive into a community without paying taxes to that specific community contribute to the wear-and-tear of public roadways, and therefore they should pay for the upkeep.Associated Press, January 27, 2011, Boston Globe
Neb. senators debate bill aimed at Omaha wheel tax
, Retrieved Sept. 3, 2014, "...Omaha's ordinance, passed last year, imposes the $50 tax on people who live elsewhere but work inside Omaha city limits..." Critics of wheel taxes have argued that wheel taxes are not fair since they are an example of

taxation without representation "No taxation without representation" is a political slogan that originated in the American Revolution, and which expressed one of the primary grievances of the Thirteen Colonies, American colonists for Kingdom of Great Britain, Great Britain. In ...

since the people taxed have no political representation within the community.

Chicago (''City in a Garden''); I Will , image_map = , map_caption = Interactive Map of Chicago , coordinates = , coordinates_footnotes = , subdivision_type = Country , subdivision_name ...

has a ''wheel tax'', which is actually a registration fee that is imposed on city residents and businesses, rather than outsiders.2016, City of Chicago, Office of the City Clerk

, Retrieved Mar 27, 2016, "All Chicago residents ..." Many suburbs of

Chicago (''City in a Garden''); I Will , image_map = , map_caption = Interactive Map of Chicago , coordinates = , coordinates_footnotes = , subdivision_type = Country , subdivision_name ...

September 17, 1998, Pat Clawson, Chicago Tribune
Wheel Tax Sought On Business Vehicles
, Retrieved Sept. 3, 2014, "..The wheel tax, which ranges from $22 to $160 a year depending on the size of the vehicle, helps fund road repairs....."Chris Walker, March 26, 2013, Chicago Tribune

, Retrieved Sept. 3, 2014 such as Evanston, Illinois, EvanstonBob Seidenberg,, Chicago Sun-Times
Evanston will still require wheel tax, but no sticker
, Retrieved Sept. 3, 2014, "...owners of all vehicles registered through the Illinois Secretary of State to an Evanston address were required to pay an annual wheel tax, ..." have also adopted residents-only vehicle registration fees (also called a ''wheel tax'' by some of the municipalities). Enforcement of the collection of registration fees has sometimes been expedited by the use of cameras. Authorities can search car registration records to identify what city a car's registered owner lives in, and can issue a tax based on that information.

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See also