There is a false rumor going around that Washington County sales tax dollars are going to Milwaukee. There is no truth to this.
There are some changes happening with the sales tax, and here is a quick breakdown.
County Sales Tax
The county collects half of a percent (1/2%) on all eligible sales. 100% of this money stays in Washington County. The county has always shared a portion of this with municipalities in the form of shared services. For the 2024-2025 budget, the county increased the portion it shares by $3 million per year will cities, villages, and towns in Washington County. This revenue is being shared through grants and shared services, to ensuring that taxpayers will receive 100% of the benefit. In West bend, this will be $1 million per year in grants to fund the replacement of lead laterals and the resulting road repairs, as nearly 850 homes in West bend have their water supplied through lead laterals.
State Sales Tax
The state collects five percent (5%) on all eligible sales. The State gives back a portion of this to all local governments, including counties, cities, villages, and towns. This is commonly referred to as shared revenue. For 2024-2025, the State is increasing this shared revenue to all communities. Washington County is getting an extra $1.4 million and Milwaukee County is getting an extra $7 million. presumably, this is proportionate to the sales tax generated in these communities.
Local Sales Tax Increases for Milwaukee
The State is allowing some additional taxing privileges just to Milwaukee. The city is being allowed to create its own sales tax (in Wisconsin only counties have sales tax) of two percent (2%). The State is also allowing Milwaukee County to increase its sales tax from half of percent (1/2%) to a full one percent (1%). They are increasing their tax to .9% (9/10%). No other city or county in Wisconsin is being granted this privilege. So if you buy something in the city of Milwaukee, the sales tax will now be eight percent (7.%) and if you buy something anywhere else in Milwaukee County, it will be six percent (5.9%).