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Milwaukee County sales tax going up
There is a way for Milwaukee County residents to save hundreds, possibly thousands of dollars.
MILWAUKEE - Milwaukee's sales taxes are going up on Jan. 1, which leaves weeks to save hundreds, possibly thousands of dollars.
For a used car costing $15,000, someone living in Milwaukee right now would pay $825 in sales tax. After Jan. 1, it will be $360 more, a total sales tax of $1,185. You pay the car sales tax based on where you live, not where you buy.
Currently, Milwaukee's sales tax is 5.5%. Starting in January, it will go up to 7.9% That increase comes from a new 2% city sales tax and a 0.4% boost to the county's current sales tax.
That will apply at stores across the city, including at Cival Collective in Milwaukee's Walker's Point neighborhood, where they make custom-made jewelry.
"I think this is always the most fun when people come into the store, they’re like, ‘You have so many things,’" said Rae Frye, Cival Collective's owner, as she gave FOX6 a tour.
Rae Frye and Lindsay Marx
Inside, you can find a lot more than five golden rings.
"It’s the season and a lot of people want to get engaged before Christmas and need to complete things and wrap up projects and also want to get things started," said Lindsay Marx, Cival Collective lead production designer.
Just like the rest of the city, the sales tax here will be going up, leaving weeks left at the lower rate.
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"It might just be the incentive they need to make that decision, if they were looking for a little push or if they are tight on money. Those could both be reasons people would want to come in sooner," Marx said.
A gold ring with a 1.5 carat sapphire and six diamonds will cost you about $3,400. The sales tax on that before Jan. 1 is roughly $188. But after Jan. 1, the total tax will be $270 – an $82 increase.
It's not just the big-ticket items that will cost more.
"We designed a pocket knife that’s a little bit better," Frye said. "It’s an empress moth, tiny, good for purses. We’ve really enjoyed the knife-designing process."
That knife costs $32. In January, the sales tax on it will go up 77 cents.
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"I think we have such a strong client base and really unique things, that I think people will still be encouraged to come here because of the things that we offer," Frye said.
"I’m really excited about the local support that’s going to go back to our community: our parks and city services," Marx said.
The city comptroller estimates the new tax could bring the city an extra $184 million dollars a year.
The state changed the law in 2023 to allow both of the taxes. City and county officials said it was needed to stop a budget shortfall and massive cuts.
What's not taxed?
As to what's not subject to any sales tax, some of those exemptions include:
- Food/groceries intended for home consumption (if you dine/drink at a bar or restaurant, that's subject to sales tax)
- Bottled water
- Water sold through mains (from a public or private entity)
- Motor fuels (gasoline)
- Newspapers
- Caskets
- American & state flags
- Laundry/dry cleaning
- Prescription drugs (excluding insulin)
- Insulin when used to treat diabetes/supplies for blood sugar testing
- Medical devices and equipment