News
October 11, 2024 | By Benjamin Yount
Policy Issues
Accountable Government

Opposition Grows to Possible Waukesha County Sales Tax

“The fact that Waukesha County does not yet have a sales tax is a point of pride, and shows how much our county values fiscal responsibility,” Amanda Payne, the CEO and President of the Waukesha County Business Alliance said.

There’s at least one group ready to say "No" to Waukesha County’s proposed sales tax.

The Waukesha County Business Alliance is organizing to push back on the sales pitch that the county needs to implement a sales tax to keep-up with expenses.

“The fact that Waukesha County does not yet have a sales tax is a point of pride, and shows how much our county values fiscal responsibility,” Amanda Payne, the CEO and President of the Waukesha County Business Alliance said. “We have lasted this long because we have only taken as much as is needed. This proposal raises taxes by $50-60 million, which is tens of millions more than what is needed.”

Waukesha County Executive Paul Farrow says creating a sales tax will allow the county to continue to provide the same services that county residents have come to expect.

He took to Twitter on October 7th to sell the idea of a .05% sales tax, that would take effect July 1, 2025.

"The plan is a compromise proposal to address our critical fiscal needs for nearly a decade," Farrow wrote.

Farrow said the money raised by the sales tax would pay for a possible jail expansion, possibly boost the county’s highway department, and help close Waukesha County’s $5 million budget gap.

“This allows the County to already start planning for the 2026 budget with a potential new revenue stream,” he added.

But Payne said there are still a lot of unanswered questions.

“Rushing this tax proposal through does not preserve the positive tax climate that Waukesha County families and businesses value,” she said. “This sales tax impacts businesses because it raises costs for consumers during a time of increased costs and inflation; making goods less affordable means less people buying goods. A sales tax is charged on most consumer goods and is paid at the time of purchase by the consumer. The business community desires to keep the end purchase price for these goods as low as possible, understanding that families are already struggling.”

Payne said the proposed sales tax would take a lot of money from taxpayers.

“The sales tax proposal raises taxes by too much, too fast and is an over taxation of Waukesha County residents. The county faces projected budget shortfalls in future years, yet the proposed sales tax would generate an estimated $50-60 million dollars annually starting next year. Far more than needed to close projected budget gaps,” Payne added.

Waukesha County is one of the last Wisconsin counties without a sales tax. Milwaukee County just raised its sales tax as part of the shared revenue agreement at the beginning of 2024. The city of Milwaukee also created its first ever city-sales tax at the beginning of the year.

Farrow has promised to split the money between the county itself and local governments inside of Waukesha County.

Farrow said the County Board will discuss the sales tax in committee on Monday, then the full board will vote in two weeks.

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