Waukesha County sales tax proposal, business group opposes

Waukesha County Courthouse

A Waukesha County commerce group on Wednesday voiced opposition to a proposed county sales tax, days after an ordinance was introduced.

On Monday, County Executive Paul Farrow said in an X post that he introduced an ordinance last week to authorize a 0.5% sales tax. The tax would be added to the existing 5% state sales tax and take effort on July 1, 2025.

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"The plan is a compromise proposal to address our critical fiscal needs for nearly a decade," Farrow's post said.

FOX6 News first reported on the possibility of a Waukesha County sales tax in August to address potential budget cuts. The county is one of only four in Wisconsin that does not currently have a sales tax. 

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Waukesha County budget cuts; sales tax on the table for future

A big question looms as Waukesha County grapples with potential budget cuts: How much longer until the county implements a sales tax?

The Waukesha County Business Alliance, a countywide chamber of commerce with more than 1,200 members, on Wednesday urged the county to "slow down and evaluate" the proposed sales tax.

"With costs already soaring, now is not the time to put additional burden on Waukesha County families and job creators," Amanda Payne, the group's president and CEO, said in a news releasee. "This proposal is too much, too fast, and we call on the county to reevaluate the tax plan. We are opposed to overtaxing Waukesha County residents."

Payne's statement went on to say the proposal would overtax Waukesha County residents with a $50 million to $60 million increase. The group said it is calling on the county to work with state lawmakers, business leaders and community members to find ways to address the budget challenge without harming the business environment.

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Farrow previously said his upcoming 2025 budget will see cuts on par with the last few budget cycles, adding that revenue generated from property taxes is not enough anymore.

"We’ve been in a position now for the last five, six or seven years now at least, of cutting departments. Between $2 million and $2.5 million a year, we’re asking departments to cut their services," he told FOX6 in August. "We’re at a point now – we’re probably as far as we can go."

Waukesha, Racine and Winnebago counties don’t have a county sales tax. Like Waukesha, Racine County is considering a sales tax. Manitowoc County is adding one in January.

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