Starting January 1, 2024, both Milwaukee County and the City of Milwaukee will increase its sales taxes. Sales taxes in the City of Milwaukee will rise from 5.5% to 7.9%, while sales taxes outside the city, but still within Milwaukee County, will rise from 5.5% to 5.9%.
Rob Henken, president at the Wisconsin Policy Forum, explains that the city and county have been facing longstanding financial challenges. “One of the problems has been a revenue structure for both governments. That simply has not afforded these governments the opportunity to see annual increases in revenues that are going to at minimum mirror inflation, but also certainly are not capable of accounting for some of their unique expenditure needs," he says.
Henken says the sales tax differs from the property tax because it applies to people that purchase items in those jurisdictions, which includes visitors to the area.
And, he adds that some items like groceries and medication are not taxable. “Most retail items that you would purchase are going to have that sales tax applied, even purchases at grocery stores. So, groceries are not subject to the sales tax, but if you are buying a food item at a grocery store, for example that you’re going to eat as a meal, that would be subject to the sales tax.”
Henken says one key exception is vehicle purchases. “In our state, the sales tax that’s applied to an automobile purchase is based on where you reside, not where you made the purchase.”
For those wondering whether to make big purchases before 2024, Henken says every consumer has a decision to make, but it’s important to remember that even with the increase it amounts to an extra $2.40 for a $100 purchase in the City of Milwaukee.
River Run works with our clients to “roadmap” future technology needs and solutions. For technology hardware and projects, we look to save our clients 2.4% or 0.4% by purchasing those items prior to December 31st, 2023, even though installation or project completion may not happen until next year. A River Run Account Executive will work with your team and our technical architects to ensure you have the right network and security solutions for 2024 and beyond while looking to save you as much as possible on your technology investments.
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