Late fee would inflate wheel tax

An Omaha city councilman is looking into a proposal that would tack a $25 late fee onto the city's wheel tax if it's not paid on time.

The fee would be on top of the typical $35 wheel tax, meaning a motorist who was tardy in paying would have to shell out a total of $60.

Councilman Chris Jerram put the resolution on Tuesday's agenda, but said he has decided to delay consideration for six weeks so he can work with the Douglas County Treasurer's Office to determine how the fee would work, how it would be enforced and other issues.

Jerram said the amount of the proposed late fee could change as well.

A public hearing on the proposal had been scheduled for Tuesday but now will be March 16, said City Clerk Buster Brown.

The ordinance currently states that the late fee would be imposed if the wheel tax was not paid in a “timely manner.” Jerram said that's one of the issues that still needs to be worked out.

Jerram said Friday that he wants to use revenue from a wheel tax late fee to boost the city's street maintenance fund, which is $1.6 million over budget because of several major snow removal efforts this winter.

Money from the late fee could be used to fix potholes, for instance, Jerram said.

City Councilman Ben Gray said he isn't sure he can support Jerram's proposal.

“Right now, a late fee on a wheel tax would be a little difficult to justify in my district, but I do want to listen to what his position is on it,” Gray said.

City Comptroller Al Herink said Omaha collects about $15.5 million a year in revenue from the wheel tax.

In 2006, the $35 annual tax was expanded to apply to those who live beyond the city limits but within Omaha's three-mile zoning jurisdiction. The money is used for street maintenance.

The wheel tax is paid during vehicle registration and renewal.

Douglas County Treasurer John Ewing Jr. said of the 500,000 vehicles registered or renewed every year, the wheel tax for about 10 percent, or 50,000 goes unpaid. However, he said, about half of those are most likely people who have moved out of the area, sold a vehicle or had another legitimate reason to skip renewal and, consequently, the wheel tax payment.

Jerram and Ewing said they'll meet next week to discuss the issue.

Ewing said he wants to make sure the county's computer system can accommodate the addition of a late fee.

“We don't have any problem with the city wanting to do this,” Ewing said. “You have to look at ways to get people to voluntarily comply.”

Contact the writer:

444-3100, maggie.obrien@owh.com

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