Evers Proposes Allowing Local Governments To Raise Taxes

MADISON, WI—Gov. Tony Evers wants to allow counties to be able to increase their existing sales tax and allow larger municipalities to impose a new half-cent sales tax, if local voters approve, according to a news release.

Gov. Tony Evers announced his 2021-23 biennial budget proposal on Friday. The increase in taxes could help counties with investments in local roads, direct services, maintenance, public safety, and public health.

“From the unexpected costs of the COVID-19 pandemic to the years of neglect and underfunding from the state, communities across Wisconsin have been under immense budgetary pressure, and they've been doing more with less for far too long,” Evers said in the release. “The state should be setting the floor, not the ceiling, for local partners, and Wisconsin taxpayers should have a say in whether they want their communities to have more resources so their local government can keep providing critical services—that's pretty simple stuff. Our proposal puts the question back in the hands of the folks best positioned to make decisions for their community—local leaders and the people who live there.”

The proposal requires a local referendum, allowing each community to decide if this is a tool they want to utilize.

Wisconsin's sales tax is 5 percent. Under current law, counties have the ability to impose an additional 0.5 percent tax, along with other tools such as the premier resort area tax in certain cases.