MADISON, Wis. — Wisconsin Gov. Tony Evers is proposing allowing local governments to raise sales taxes as a way to help communities recover financially from the COVID-19 pandemic.
The governor’s 2021-2023 budget proposal includes a provision that would allow counties to increase sales tax by an additional 0.5 percent on top of the 0.5 percent allowed under state law right now — if the increase is approved by referendum. The budget proposal also allows municipalities of 30,000 people or larger to also increase sales taxes by a further 0.5 percent if approved by voters in a referendum.
“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,” Gov. Evers said in a statement announcing the proposal.
State law sets sales tax at 5 percent, with 68 out of the state’s 72 counties adding on the additiona 0.5 percent currently allowed.
Wisconsin currently has the lowest sales tax among its neighbors. Indiana’s current sales tax is 7 percent, Minnesota’s is 6.875 percent, Illinois’ is 6.25 percent and Iowa and Michigan are at 6 percent.
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