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Racine County Board approves new sales tax
The Racine County Board approved a 0.5% county sales tax. It will take effect in April 2025 and is expected to generate $20 million annually.
RACINE COUNTY, Wis. - The Racine County Board on Thursday night approved a 0.5% county sales tax. It will take effect in April 2025.
County leaders said the sales tax is estimated to bring in roughly $20 million each year and will save more than 150 jobs. The decision passed in a 13-5 vote. Board Chair Thomas Kramer said the bulk of the sales tax revenue will fund public safety services.
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"Without the sales tax, we would have lost around 90 people from the sheriff’s department and jail," he said.
Kramer said the county has been using some American Rescue Plan Act money to fund operations and essential workers. Without the sales tax, he said, the county would have lost 156 employees across the board.
"With that, I think I have to vote in favor of the 0.5% sales tax, but with caution that we continue to search for cost-saving measures," said Board Vice Chair Scott Maier.
When the tax starts generating funds, $2 million will go toward the county's debt service for property tax relief. Kramer said he and others voted no on the sales tax because they felt more money should have gone to help relieve property taxes. He hoped for at least $5 million.
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The sales tax will latch on to items like clothes and computers, which is an added hassle for parents like Delisha Dunlap.
"They’re making it hard for us," said Delisha Dunlap," she said. "We all know that everything is going to continue to go up. They don’t make it any easier for us."
The sales tax is estimated to cost the average person in Racine County $126 per year.
Sales tax decisions
It's not just Racine County that looked to a sales tax to address budget shortfalls. Waukesha County was considering its own 0.5% county sales tax before it was removed from consideration for now at this week's county board meeting.
Manitowoc County does not currently have a sales tax, but is adding one in January. Once the sales taxes take effect in Racine and Manitowoc counties, and if Waukesha County ultimately institutes one, it would leave Winnebago County as the only county in the state without one.