- TARF removed: The transportation fee, which offset special assessments, is no longer part of the city’s budget.
- Tax impact: Homeowners face an annual property tax increase of $124, with $80 being the net additional cost.
- Future solutions: Neenah is exploring alternatives to ease the burden after 2025.
(The following is a transcription of the full broadcast story)
Homeowners in Neenah will see their property taxes rise next year. The increase, tied to changes in funding for street and sidewalk repairs, was approved this week by the city’s Common Council.
For the past five years, Neenah has used a transportation fee, known as TARF, to offset the cost of special assessments for infrastructure repairs. This fee charged homeowners $40 annually, while businesses paid more. However, TARF will no longer be part of the city’s 2025 budget.
The decision comes after a Wisconsin business association threatened legal action, arguing that TARF functioned as an illegal tax.
City Financial Director Vicky Rasmussen expressed her frustration with the change.
"It was frustrating and disheartening because I feel that TARF is best for the residents," she said. The removal of TARF means homeowners will now pay an extra $124 per year in property taxes. Rasmussen clarified that since the $40 TARF is being eliminated, the net increase for homeowners is $80.
Residents have voiced concerns about the added financial burden. Walter Blank, a local retiree, shared his worries about affordability.
"I’m not happy about it. Retirees, in particular, will suffer under that, and that’s why you see people downsizing or leaving the state,” he said. Rasmussen reassured residents that the city is working to develop alternative solutions after 2025.
“We have their best interest at heart, which is why we didn’t go back to reassessing,” Rasmussen said.
Some nearby communities, such as Appleton and Green Bay, have addressed similar challenges by implementing a wheel tax. This fee is tied to vehicle registration and helps cover infrastructure costs.
As the city explores new options, the tax hike will affect all Neenah property owners next year.
