Waukesha County sales tax decision postponed, Farrow says

Waukesha County Courthouse

A proposal to institute a Waukesha County sales tax is on hold, County Executive Paul Farrow announced Tuesday evening.

Farrow previously introduced an ordinance to authorize a 0.5% sales tax. That tax would be added to the existing 5% state sales tax and take effect on July 1, 2025.

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In an X post, the county executive said he decided to withdraw the sales tax ordinance from consideration at Tuesday night's county board meeting. It had been up for a vote.

"My decision to withdraw the sales tax ordinance from consideration is democracy in action," Farrow's post read. "Postponing the measure will allow for more public input and provide for an opportunity to educate residents on the county’s financial challenges. I will work with the County Board to examine possible legislative remedies, including the potential to levy less than the 0.5% county sales tax currently allowed under state law."

Waukesha County Courthouse

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. 

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

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"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 release. "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.