This post originally appeared at https://www.bootsandsabers.com/2024/10/22/waukesha-county-charges-ahead-with-implementing-sales-tax/?utm_source=rss&utm_medium=rss&utm_campaign=waukesha-county-charges-ahead-with-implementing-sales-tax

They vote tonight. In an era where Waukesha residents are being hit from all sides with price increases, homes are unaffordable, and every taxing entity is reaching further into their pockets, let’s pry that the Waukesha County Board members find the strength to stand with the citizens who elected them. And no, the citizens don’t get a direct vote on this.

On Thursday, October 3, 2024 the County Executive introduced an ordinance to authorize a 0.5% county sales tax to be added to the existing state sales and use tax of 5%. The ordinance implements a sales tax beginning on July 1, 2025.

The plan is a compromise proposal to address our critical fiscal needs for nearly a decade. The specifics of the proposal are as follows:

1. Up to 20% of sales tax collections (estimated $12 million if sales tax collections reach $60M) would go toward a direct reduction of property tax bills partially offsetting the impact of the sales tax on property owners. With the property tax cut in place the impact of the sales tax on a homeowner drops from about $12.00 per month to roughly $7.25 per month. The tax cut will appear on the December 2025 tax bills.

2. Up to 20% of the sales tax collection beginning in January of 2027 (estimated to be about $12 million if sales tax collections reach $60M) would go toward local property tax reduction through monthly municipal aid payments. The level of aid will be determined based upon population of the municipality. Local aid levels would be revisited every two years in conjunction with the state budget cycle.

3. The remaining 60% of sales tax dollars (roughly $36 million of an estimated sales tax collection of $60M) will be used to further reduce the County’s reliance on the property tax levy by eliminating our annual budget shortfall for at least the next 8 to 10 years and provide funds to the capital budget further reducing the County’s need to borrow funds.