Local Tax Issues

Milwaukee County Board Approves Measure to Nearly Double Sales Tax

Milwaukee County Board Approves Measure to Nearly Double Sales Tax

The Milwaukee County Board is set to vote today, July 27, on whether sales tax in the county should nearly double. 

The Milwaukee Journal Sentinel reported on the situation, which has led to strong opinions on both sides of the issue. The measure passed in a joint committee meeting last week but there are some key holdout votes. The remaining county supervisors have not publicly stated how they plan to vote at today's County Board meeting, and "a couple of possible swing votes" are anticipated. 

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Credit: jferrer/Getty Images

Should the measure pass in today's crucial meeting, Milwaukee County sales tax would rise to 0.9%. The new rate could take effect as soon as January 1, 2024 if it is officially adopted and sent to the Secretary of Revenue by September 1, 2023. The likelihood of this happening is in question as the County Board is currently slated to be on recess for the month of August.

If approved, the sales tax increase is expected to bring the county an additional $82.2 million in revenue, rising to $92 million by 2028. This alters long-term budget projections to include a $31 million surplus rather than the currently projected $18 million deficit.

Proponents of the Milwaukee County sales tax increase say that serious budget cuts impacting public transit and other programs will have to occur if it doesn't pass. 

Per the Journal Sentinel's report, the county would be forced to make "major cuts" to more than half the county's bus routes, parks and recreation department, and other non-mandated services. Additionally, county officials would be unable to fund nearly $1 billion of deferred infrastructure needs and would not be able to properly address approximately $760 million in unfunded pension liability.

Milwaukee County Executive David Crowley is in favor of the measure, noting that he is "confident but I'm still lobbying. I'm still talking to folks."

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Credit: Jon Mattrisch/Getty Images

He continued, "A 'no' vote is really going to put many of our programs and services on the chopping block. A no vote is a 'yes' to cut our public transit, a 'yes' to cut our parks department, a 'yes' to cutting the services and the programs that increase and maintain the quality of life that everybody deserves all across Milwaukee County."

Those opposed to the tax hike say that it could have a negative impact on the local economy, particularly for low-income families. If passed, the sales tax in Milwaukee itself would rise to 7.9% -- due to a prior 2% municipal increase -- including the existing 5% Wisconsin state sales tax. In other Milwaukee County communities, sales tax would increase to 5.9%.

An update from the Associated Press confirms that the board approved the tax sales increase.

**Updated Friday, July 28, 2023 at 10:11 a.m. EST**

What do you think? Should Milwaukee County increase sales tax?

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Feature Image Credit: Manuel Augusto Moreno/Getty Images

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