Milwaukee County Considering 0.4 Percent Sales Tax Increase

MILWAUKEE, WI — An additional 0.4 percent sales tax across Milwaukee County is set to be considered by the County Board of Supervisors on July 27 as officials look to avoid cuts to services.

The board will consider the matter after two key committees on Monday voted to recommend their adoption, according to a news release from District 10 Supervisor and Chairwoman Marcelina Nicholson and District 2 Supervisor Willie Johnson Jr.

The measure moved ahead after a unanimous vote came from the Committee on Personnel and a 4-3 vote from the Committee on Finance.

The measure would amend Chapter 22 - Sales and Use Taxes of Milwaukee County to increase county sales tax by 0.4 percent in January 2024.

“In order to avert devastating cuts to critical services like housing, human services, senior supports, transit routes, public safety, and parks and recreational facilities, it is necessary that we take action on the only option currently available that will provide the necessary revenue to prevent us from falling off a fiscal cliff," said Chairwoman Nicholson, the author of the measure, in a statement.

The increase would be expected to create around $82 million in new revenue for the county to put toward programs and services, according to the news release. The new measure would also include provisions to help enroll new hires in the Wisconsin Retirement System while closing the county's system to new hires, the news release said.

According to the news release, the move would help the long-term stability of the pension system while aligning with Wisconsin's current system.

“We have worked diligently to find solutions to our fiscal challenges, and the transition to the Wisconsin Retirement System is a significant step in the right direction,” said Supervisor Johnson in a statement. “By embracing this change, we are demonstrating our commitment to the retirement security of our employees while managing costs effectively. Protecting the well-being of our workforce is of the utmost importance. This legislation does just that.”

The possibility of increasing the county's sales tax comes after Democrat Governor Tony Evers' passage of Act 12 to reform shared revenue laws and increase state funding for local governments.

The possibility also comes after the City of Milwaukee Common Council recently increased sales taxes by 2 percent in July.