Sales Tax Increase Adopted By Milwaukee County Board Of Supervisors

MILWAUKEE, WI — Sales taxes across Milwaukee County are set to increase by 0.4 percent in January 2024 after the Milwaukee County Board of Supervisors approved the measure on Thursday in a 15-3 vote.

The increase, which has yet to be signed but is expected to be supported by County Executive David Crowley, could generate around $82 million in additional yearly revenue, according to a news release from board Chairwoman and 10th District Supervisor Marcelia Nicholson. In a statement to social media after the vote, Crowley said the county finally has additional revenue needed to "avert financial disaster."

The adoption of the new sales tax comes after an overhaul of Wisconsin's shared revenue law and ahead of mounting problems with the county's pension system. An estimate of the fiscal impacts said the increase can fund pension liabilities and obligation bonds until the county's system is fully funded or for 30 years, while it would also free up cash currently used on the pension for services and avoid deficits and cuts, such as ones forecasted for transit.

The vote came after hours of debate. Those who voted against the measure included 4th District Supervisor Ryan Clancy—who had attempted but failed a measure at Thursday's meeting to delay the sales tax question until the fall—plus Vice Chair and 5th District Supervisor Sequanna Taylor and 17th District Supervisor Steve Taylor.

Clancy, who also represents Wisconsin's 19th Assembly District as a Democrat, argued that the tax was regressive and had attempted to delay a vote so researchers could determine if the additional funds could also provide free Milwaukee County Transit System bus rides. Clancy said the effort came as a way to offset the regressive tax for those who are most affected.

In a statement Thursday, 14th District Supervisor Caroline Gomez-Tom said the decision was challenging but necessary.

"It will provide much-needed support to essential county services such as transit, mental health programs, senior assistance, parks, and housing initiatives — all of which directly impact our constituents on a daily basis," said Gomez-Tom. "The past decade has been marked by ballooning budget deficits, resulting in debilitating cuts to essential programs and services, making this vote even more historic and crucial. Without a sales tax increase, further cuts would have led to even worse consequences, including state fines and penalties, jeopardizing the wellbeing and safety of countless individuals in Milwaukee County."

County Supervisor Liz Sumner, who represents the 1st District, added during the debate that her colleagues should also focus on the bigger picture of the tax increase: fixing the pension system to free up funds.

Ahead of the expected increase, Milwaukee County is under a sales tax rate of 5.5 percent, according to a report by The Milwaukee Journal Sentinel. Thursday's vote could bring that up to around 5.9 percent.

See also: Milwaukee County Considering 0.4 Percent Sales Tax Increase