Milwaukee Common Council Approves 2% City Sales Tax
MILWAUKEE – In a 12-3 vote, the Milwaukee Common Council has approved the creation of a 2% city sales tax. The tax, which could take effect as early as January 1, 2024, will only apply to certain taxable purchases such as cars, excluding prescriptions and groceries.
Currently, the sales tax in Milwaukee is 5.5%, with 5% going to the state and 0.5% to the county. However, none of this money goes directly to the city as the state does not have municipal sales taxes. A new state law, passed by the Wisconsin Legislature and signed by Governor Tony Evers, granted the Milwaukee Common Council the power to vote on the issue.
The nonpartisan Legislative Fiscal Bureau estimates that the city sales tax will generate $194 million annually. The majority of this revenue will be allocated towards addressing the city’s pension problem. Any additional funds in the future will be used to hire more police officers and firefighters.
To enact the tax, ten out of the fifteen Common Council members, or two-thirds of the body, needed to approve it. The tax will expire after 30 years or when the pension is fully funded, whichever comes first.
Mayor Cavalier Johnson expressed his support for the sales tax, stating that it will protect Milwaukee and its residents from severe cuts to library and public safety services. He also emphasized that this is a significant change in how city services are funded and thanked the Common Council members for their support.
With the new revenue, Milwaukee aims to improve emergency service response times and continue the innovative work of the Milwaukee Public Library. Mayor Johnson anticipates signing the sales tax ordinance, file number 230357, in the coming days.
This sales tax increase marks a turning point in Milwaukee’s municipal finances and will have a significant impact on the city’s ability to provide essential services to its residents.
What specific taxable purchases will the 2% city sales tax in Milwaukee apply to?
Milwaukee Common Council Approves Implementation of 2% City Sales Tax
The Milwaukee Common Council has voted 12-3 in favor of establishing a 2% city sales tax, a move that could potentially be enacted starting January 1, 2024. The tax will solely apply to specific taxable purchases like cars, while prescription medications and groceries will be exempt.
Presently, the sales tax in Milwaukee stands at 5.5%, with 5% going to the state and 0.5% to the county. However, the city does not directly receive any of this revenue as municipal sales taxes are not implemented by the state. Under a new state law passed by the Wisconsin Legislature and signed by Governor Tony Evers, the Milwaukee Common Council now possesses the authority to make decisions regarding this issue.
According to the nonpartisan Legislative Fiscal Bureau, it is estimated that the city sales tax will generate approximately $194 million annually. The majority of these funds will be dedicated to addressing the city’s pension deficit. Any surplus funds in the future will be utilized for increasing the number of police officers and firefighters.
To implement the tax, it required the approval of at least ten out of the fifteen Common Council members, representing a two-thirds majority. The tax will be in effect for 30 years or until the pension deficit has been fully covered, whichever happens sooner.
Mayor Cavalier Johnson has expressed his endorsement of the sales tax, emphasizing that it will safeguard Milwaukee and its residents from severe cuts in library and public safety services. He also acknowledged that this marks a significant change in how the city’s services are funded and offered his gratitude to the Common Council members for their support.
With the additional revenue generated by the tax, Milwaukee aims to enhance emergency service response times and continue the innovative initiatives of the Milwaukee Public Library. Mayor Johnson anticipates officially signing the sales tax ordinance, designated as file number 230357, in the near future.
This increase in sales tax marks a pivotal moment for Milwaukee’s municipal finances and will have a meaningful impact on the city’s capability to provide essential services to its residents.
