Milwaukee-area leaders push for larger boost to county sales tax than in local government funding bill
The state Senate should amend sweeping legislation boosting funding to local governments to forgo referendums on Milwaukee sales taxes and allow the county to levy a higher sales tax than what is in the current bill, a coalition of Milwaukee-area business leaders, organizations and others said in a letter Thursday.
The request for the additional sales tax funding — for the county, an additional 0.5% sales tax as opposed to the 0.375% increase in the current bill — reflects costs to the county that are contained in the legislation plus the county's existing unique public safety costs as opposed to solely addressing its pension obligations, said Brandon Weathersby, spokesperson for County Executive David Crowley.
He said in negotiations with legislators at the Capitol Crowley had pushed for a larger sum than the 0.375% sales tax increase contained in the bill.
Estimates say a 0.375% sales tax would provide a boost of about $75 million to the county annually. In contrast, the 0.5% sales tax currently imposed in Milwaukee County generated about $96.3 million last year, according to state Department of Revenue data on county sales tax distributions.
The letter from the Move Forward MKE coalition, which includes Milwaukee County and the City of Milwaukee, also asks that the Senate amend the bill to allow the city and county to implement sales taxes by majority votes of the Common Council and County Board instead of putting the question to voters.
As written, the legislation passed by the Assembly and now before the Senate would allow the City of Milwaukee to levy a 2% sales tax while Milwaukee County could add a 0.375% sales tax on top of its current 0.5% tax, if voters approve.
"Local legislative approval aligns with current state law and past precedent for implementing other sales taxes and places the decision with accountable, locally elected representatives who have the resources to evaluate complex policy options and solicit public input," the letter states.
"Providing Milwaukee the ability to leverage a local tool to address local priorities, while applying a similar standard required of other communities throughout the state allows Milwaukee to solve its challenges using local resources rather than demanding any additional state support."
The letter echoes a push by local leaders for the sales taxes to be implemented through a vote of the Common Council and County Board.
More: There's a lot of talk of Milwaukee going 'bankrupt.' It's more complicated than that.
In addition to the city and county, nearly 70 businesses and organizations signed on to the letter obtained by the Journal Sentinel. They ranged from the Metropolitan Milwaukee Association of Commerce to the Milwaukee Bucks, the League of Wisconsin Municipalities, the Milwaukee Police Association and the Milwaukee Professional Fire Fighters Association Local 215.
Michael Pyritz, spokesperson for Senate Majority Leader Devin LeMahieu, confirmed the office had received the letter and said "discussions are continuing" as the bill moves through the legislative process.
A separate letter from the Metropolitan Milwaukee Association of Commerce to LeMahieu and Assembly Speaker Robin Vos also advocated for boosting the sales taxes through votes of the Common Council and County Board.
"As employers who have businesses with billions of dollars invested in property and equipment, hundreds of thousands of employees and businesses that draw millions of visitors to the region, we rely on a fiscally sound local government to provide vital services," reads the letter signed by 46 of the most powerful corporate leaders in the region. "We believe strongly that the sales tax increase is a necessary step to right the future course of the city and county. The next kick of this can is not further down the road, but off a cliff."
The letter states that either requiring a unanimous vote of the local government bodies, as has been floated at the Capitol, or putting complicated referendum questions to voters "is too big a risk to our future."
Milwaukee-area leaders have long pushed for additional revenue from a sales tax and shared revenue that returns to the community from the state. In recent weeks municipal leaders from around the state have testified to state lawmakers about the strain on operations caused by flat shared revenue over two decades along with rising costs.
The effort comes as the city approaches a "fiscal cliff" in 2025 in which it would have to cut deep into services such as police, libraries and the Fire Department and as Milwaukee County, too, faces a deeply challenging fiscal picture.
Although Vos has said his caucus was "done negotiating" on the local government funding bill that applies to communities across the state, LeMahieu said his caucus won't support a provision that would require Milwaukee officials to get approval from voters before raising sales taxes. LeMahieu's move is one Milwaukee officials and Gov. Tony Evers would support but that Vos said could "kill the bill."
Need more help with voting questions? The Milwaukee Resource Guide is here to help. Have something you want answered? Submit a question.
Our subscribers make this reporting possible. Please consider supporting local journalism by subscribing to the Journal Sentinel at jsonline.com/deal.
DOWNLOAD THE APP: Get the latest news, sports and more
This article originally appeared on Milwaukee Journal Sentinel: Area leaders push for larger boost to Milwaukee county sales tax
