Sales Tax Ordinance
UPDATE: On October 22, 2024, County Executive Farrow withdrew this proposal from consideration by the County Board to seek additional public input on the issue and pursue a change in state law to would allow the County to implement a sales tax at a rate less than current state law permits.
The Wisconsin State Legislature will convene in January of 2025 at which time the County will work closely with Waukesha County’s legislators, and legislative leaders in Madison, to pass a bill to change state law relating to county sales tax collections.
To support such a change, please call your state legislator at: (800) 362-9172
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:
Since 2006, our revenue has been constrained by state law, and it has not kept pace with the rising costs of providing essential services. Each year, county residents contribute approximately $1.5 billion in sales and income taxes to the state government in Madison. In return, our county receives just $60 million in state aid, ranking us as the second lowest in per capita state aid among Wisconsin counties.
Background on Sales Tax Need: County governments are an extension of the state, tasked with implementing and enforcing state laws and regulations. Ideally, the state should fully fund the cost of these mandated services. Unfortunately, it has consistently fallen short of this obligation. In the upcoming 2025 Waukesha County Budget, approximately 44% or about $51 million of the revenue collected from county property taxpayers will be allocated to cover the state’s funding shortfall.
Waukesha County has a long-standing reputation for fiscal prudence and effective planning, holding the highest attainable bond rating (AAA/Aaa) for decades. Our data-driven decision-making and conservative budgeting have distinguished us as one of the nation’s top-performing counties. Despite our commitment to fiscal responsibility, nearly 20 years of levy limits have left our budget approximately $5 million short each year. This shortfall has necessitated significant cuts to balance the budget and maintain core services. Without a sustainable revenue solution, we will continue to face difficult decisions that will adversely impact our residents.
Timeline:
October 3, 2024 Sales Tax Ordinance Introduced
October 14, 2024 Joint Meeting of the Finance and Executive Committees
October 22, 2024 Meeting of the full Waukesha County Board (Sales Tax Vote)
UPDATE: October 22, 2024, County Executive Withdraws Sales Tax Ordinance
July 1, 2025 Sales tax collection was set to begin
Jan to Dec 2026 First full year of County sales tax collection
Jan 2027 Property tax cut in place & municipal aid payments begin
Waukesha County Sheriff Statement of Support
Waukesha County District Attorney Statement of Support