Waukesha County sales tax withdrawn, incremental rate proposal coming

(The Center Square) – A Waukesha County state representative proposed giving counties more flexibility on sales tax ordinances on the same day the county’s executive withdrew a 0.5% sales tax proposal.

Waukesha County Executive Paul Farrow said he was withdrawing the measure – scheduled to take effect July 1 – to allow for more public input and allow the county to better explain its financial challenges.

The sales tax was estimated to collect $60 million annually with $12 million going to offset a property tax decrease, $12 million toward municipal aid payments and $36 million going toward the county’s capital budget.

“I will work with the County Board to examine possible legislative remedies, including the potential to levy less than the 0.5% county sales tax currently allowed under state law,” Farrow said.

Meanwhile, Wisconsin state Rep. Dave Maxey, R-New Berlin, said he is proposing a measure that allows counties to implement incremental sales tax rates of 0.1%, 0.2%, 0.3%, 0.4% or 0.5% instead of only allowing for no additional tax or a 0.5% increase.

“Families are feeling the stress of record high inflation, and it’s our responsibility to provide solutions that consider their situations,” Maxey said in a statement. “I know that every dollar matters for families right now. Counties shouldn’t be forced to tax to the max when they simply don’t need it.”

Maxey said that the proposal will be introduced at the state of the next legislative session and said he hopes the proposal will help counties meet community needs without taxing at the maximum rate.

“By allowing smaller, gradual tax increases, we give communities the ability to adapt to their specific circumstances,” Maxey said, “At the end of the day, it’s all about making sure every taxpayer feels supported.”