Milwaukee Approves 2 Percent Local Sales Tax Increase

MILWAUKEE, WI — A 2 percent local sales tax increase was approved by the Milwaukee Common Council on Tuesday as officials look to avoid financial crisis down the line, according to several media reports.

The measure, passed 12-3, is expected to generate $193 million in initial annual revenue, the common council said in a tweet. The increase in local sales tax comes as officials say pension debts could cut into fire, police and other critical services, according to a report by TMJ4 News.

"Today, members of the Common Council voted in favor of implementing a 2% City sales tax. This will avert drastic cuts and take us from the path to insolvency," read a statement from Common Council President Jose Perez. "With this vote behind us, it’s time to look to the future and strategize how best we can utilize our revenues to improve the lives of all Milwaukeeans. We look forward to working on a City of Milwaukee budget that doesn’t begin with a deficit and we can conclude with a major investment."

The common council gained the ability to raise its local sales tax in a recent bipartisan measure to increase shared revenue. Opponents of the sales tax plan pointed out concerns about strings attached to the shared revenue bill like slowing funds for diversity, equity and inclusion, according to a report by the Associated Press.