Milwaukee County sales tax increase approved in 15-3 vote

MILWAUKEE - The Milwaukee County Board of Supervisors voted Thursday, July 27 15-3 to approve the .4% sales tax increase. 

Right now in Milwaukee County, spenders pay a 5.5% sales tax on everything from cars to clothes to furniture – 5% goes to the state, and 0.5% goes to the county. In January, the city of Milwaukee will start a 2% sales tax as well.

"This has a 40 cents impact on a $100 purchase," said Chairwoman Marcelia Nicholson. "This vote definitely kept me up at night."

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"I guarantee you, if this would have gone to referendum, it would have failed miserably," said Supervisor Steve Taylor. "My constituents – they already ship a lot of money to Milwaukee county and don’t get that return on investment back. Now you’re going to ask to tax them more."

Now that county supervisors have approved the increase, that would be a total of 7.9% sales tax in the city of Milwaukee and 5.9% in the rest of Milwaukee County. Compared to Waukesha County, where there is no county sales tax, the same things over there would be taxed at 5%.

The Wisconsin Legislature and Gov. Tony Evers gave the power to the county to go behind the maximum other counties can charge. Supporters said, without it, the county would have to make massive cuts to housing, transit, safety and parks.

The added county sales tax would start in January 2024. It lasts for either 30 years or whenever the retirement system is fully funded, whichever comes first.

The state estimates the added tax would bring the county roughly $82 million per year. That must be used for the pension.

The state’s Act 12 also places strings on the county, one of which says, moving forward, two-thirds of the Milwaukee County Board of Supervisors will need to approve money for new programs or increased jobs.

The vote

FOR tax increase 

• Liz Sumner (District 1)
• Willie Johnson, Jr. (District 2)
• Sheldon Wasserman (District 3)
• Shawn Rolland (District 6)
• Felesia Martin (District 7)
• Steven Shea (District 8)
• Patti Logsdon (District 9)
• Chairwoman Marcelia Nicholson (District 10)
• Kathleen Vincent (District 11)
• Juan Miguel Martinez (District 12)
• Priscilla Coggs-Jones (District 13)
• Caroline Gomez-Tom (District 14)
• Peter Burgelis (District 15)
• Anthony Staskunas (District 16)
• Deanna Alexander (District 18)

AGAINST tax increase

• Ryan Clancy (District 4)
• Sequanna Taylor (District 5)
• Steve Taylor (District 17)

RELATED: Find your Milwaukee County Supervisor

What is taxable?

• Clothing
• Computers
• Electricity
• Gas
• Water
• Admission to sports/entertainment events
• Parking for motor vehicles & aircraft
• Hotel rooms/lodging for under a month's stay

What is NOT taxable?

• Food/groceries intended for home consumption (if you dine/drink at a bar or restaurant, that's subject to sales tax)
• Bottled water
• Motor fuels (gasoline)
• Prescription drugs (excluding insulin)
• Insulin when used to treat diabetes/supplies for blood sugar testing
• Medical devices and equipment

How much will it cost you?

The Milwaukee County Budget Office estimated the average impact of the proposed added tax.

On average, those making less than $16,000 per year could see an added $46 in taxes. For those making $60,000 per year, they could see an estimated $148 per year in the new county tax. Those making roughly $221,000 could see an annual impact of $409. Finally, people with an annual salary of $983,000 could expect to spend an extra $1,095 per year, according to the budget office.

Reaction

Milwaukee County Executive David Crowley

"Today, the County Board of Supervisors shaped the future of the Milwaukee County for years to come by avoiding a devastating fiscal cliff that posed to threaten irreparable harm to our community. After years of advocacy, Milwaukee County finally has the additional revenue needed to avert financial disaster. 

"Thank you to the leadership of Chairwoman Maricela Nicholson, Finance Committee Chair Liz Sumner, and Personnel Committee Chair Willie Johnson, Jr. for their leadership and assistance in making this idea a reality. In addition, I am extremely grateful for the entire County Board of Supervisors for soliciting the opinions of their constituents and bringing that perspective to each part of the legislative process.

"We all share a vision of Milwaukee County where expanding programs making a difference in our neighborhoods, like youth services and housing services, are a possibility each year. We all strive for a future where we can make necessary investments to preserve the gems, like our world-class parks system, that make our region unique. And, with our stated goal of achieving race and health equity in mind, we all envision a future where health outcomes in our community aren’t determined by your race or where you live. 

"Milwaukee County is now on a path to preserve critical services, invest in improving quality of life for all county residents, and accomplishing our vision of a healthier, safer Milwaukee County for all."

Milwaukee County Board Chairperson Marcelia Nicholson

"This historic vote represents a collaborative effort that will benefit the people of Milwaukee County for generations to come. We had one shot to save the services our constituents rely on, and we got it done, securing a brighter future for our community." 

"I am immensely proud of the resilience and determination demonstrated by my colleagues on the Board tasked with making this decision. Thank you to Supervisors Steven Shea, Willie Johnson Jr., Anthony Staskunas, Deanna Alexander, Sheldon A. Wasserman, Patti Logsdon, Felesia A. Martin, Shawn Rolland, Liz Sumner, Priscilla E. Coggs-Jones, Peter Burgelis, Juan Miguel Martinez, Kathleen Vincent, and Caroline Gómez-Tom. This pivotal choice paves the way for a more promising tomorrow for Milwaukee County." 

"I also want to express my heartfelt appreciation to Governor Tony Evers for his unwavering commitment to our residents throughout this journey. Together, in collaboration with several local and state stakeholders, we have altered Milwaukee County’s trajectory away from the edge of a disastrous fiscal cliff. This historic achievement stands as a testament to the unwavering power of collaboration, and the inclusion of diverse perspectives. Through years of dedicated efforts, numerous town halls, and persistent advocacy, we have secured a brighter and more resilient path forward for Milwaukee County." 

Supervisor Priscilla Coggs-Jones

"I did not arrive at this decision lightly; I recognize the need to make tough decisions for long-term fiscal viability. The people in my district, and all of Milwaukee County, depend on the services we provide. We can't legislate hearts, but we can legislate the law. It is my duty to oversee the people’s tax dollars and ensure they are spent with equity in mind."  

Supervisor Kathleen Vincent 

"Today’s vote for the future of Milwaukee County was challenging. However, over the past 15 months as a supervisor, it became clear to me what was at stake. The voice of my constituents is very important to me, and hearing opinions from both sides of this issue was not something I took lightly. Our parks and cultural institutions are very important to the residents of District 11, along with the many other services provided by the county. In particular, losing transportation would result in devastating effects for many of our residents.  

"Today’s amendment to this legislation—requesting that the 2024 Milwaukee County Budget reduces the overall property tax levy and increases funding for parks, transit, and other services countywide—will go a long way toward ensuring greater fiscal responsibility and sustainable services for Milwaukee County residents, and it was a deciding factor in my final vote. 

"I followed my heart in this decision, after weighing out the pros and cons, and I am hopeful for positive effects from the extra revenue that will be generated by residents, as well as visitors to Milwaukee County."