MADISON, WI (WSAU) – Governor Tony Evers is proposing a “local control” proposal in his state budget that would allow counties and some cities to raise their sales tax.
Currently there is a 5-percent state sales tax. 68 of the state’s 72 counties impose an additional 0.5-percent sales tax. The governor’s proposal would allow counties to double the sales tax to 1-percent and would allow cities with populations above 30,000 to impose a new 0.5-percent sales tax. Residents who live in areas where both proposals are adopted would pay a combined sales tax of 6.5-percent.
Any sales tax changes would have to be approved via a county or city-wide referendum.
The governor said counties and cities will need the additional revenue, which could be used for road maintenance, public health, or public safety initiatives.
Some local government groups support the plan. It is opposed by Wisconsin Manufacturers and Commerce, the state’s largest business group.
Evers will unveil his budget proposal on Tuesday. The budget must be adopted by the Republican-controlled state legislature.
