The cooperatives say they're worried the tax will take money away from them and the local communities, but legislators say it's designed to help the state's infrastructure.

Senator Pat Kreitlow says the measure is designed to help Wisconsin’s roads, not hurt local businesses.

A Wisconsin Cooperative Network commercial says, "Politicians and state government should think harder about how it affects us back home. Take the franchise fee. They say it's a tax on big oil, but it's really a hidden tax on us."

Governor Jim Doyle’s plan to tax big oil companies has Wisconsin’s 800 cooperatives on edge.

"Even worse, the hidden tax increases as the price of gasoline rises. And it will siphon away money our local cooperatives would otherwise reinvest in our community," the commercial says.

But Sen. Pat Kreitlow says that was never the governor's intention. He says Doyle wants to target big oil.

"Their product leads to the chewing up of all kinds of highways and roads throughout the area and they should be willing and able to pay their fair share,” Sen. Kreitlow says.

According to Governor Doyle’s budget proposal, oil companies would be taxed depending on how much fuel they sell. The first $15 million is exempt from the tax. Sales between $15 million and $75 million would be taxed 0.5 percent. Sales between $75 million and $120 million would be taxed 1.5 percent. And sales above $120 million would be taxed 3 percent.

And Kreitlow says we need the money this tax would bring in.

"A past legislature got rid of gas tax indexing,” Kreitlow says. “That blew up a multi, multi-million dollar hole, annually, in our transportation budget. We need to find out what's the best way to pay for road maintenance and target those who use the roads the most, or who benefit the most financially from them."

But the co-ops are afraid the tax will backfireon them, so they're taking action.

"Call your state legislator now. Tell them no to the oil franchise tax," the commercial says.

Sen. Kreitlow says the legislator is more than willing to modify the measure so the co-ops aren't the targets.

Since the measure is part of the governor's budget, the earliest this tax could be approved is May, though a representative from Sen. Kreitlow’s office says it probably won’t happen until June.