Sales tax debate shifts to Milwaukee County: Here's what you need to know

MILWAUKEE (CBS 58) -- After the Milwaukee Common Council voted to raise their sales tax by 2%, the attention now shifts to the county level as officials also have an opportunity to increase its existing 0.5% sales tax.

For the first time, the Milwaukee County Board of Supervisors held a public hearing for residents to weigh in on the matter.

Before the hearing, the board discussed a new report from county officials on the economic impact of boosting the countywide sales tax from 0.5% to 0.9%. Each year, the additional 0.4% is estimated to provide $80 million in revenue to address pension costs, which is the source of Milwaukee County's financial instability.

During public input, testimony was mixed, with supporters in favor of using the additional revenue to pay pension obligations and help keep key services afloat, such as public transit and law enforcement. Meanwhile, opponents argued that money should remain in the pockets of taxpayers.

"The people of the county want parks, and they want transit and safety, but they also want to be able to feed their families," said Ron Jansen, a resident of Bay View. "At a time where people are having extreme difficulty in providing for their families, here we are adding to those woes."

If the board approves the 0.9% sales tax hike it would have an average impact of $138 per household in Milwaukee County, according to projections from the county budget office. Brandon Weathersby, a spokesman for County Executive David Crowley, said that data can vary since it was assessed based on the median list price of a $184,000 home, according to realtor data collected in May.

If the county board joins the city in raising the sales tax, the total sales tax in the city of Milwaukee would jump to 7.9%. That's accounting for the existing 5% sales tax.

Supervisor Peter Burgelis, District 15, told CBS 58 last month he expects to vote yes, but reiterated how he wanted to host additional town halls which will occur over the next two weeks before the board votes on July 27.

"If we have to cut transit, if we have to cut funding for our parks, Milwaukee County will look much different that it does today," Burgelis said.

So far, only a handful of supervisors have vocalized their position. Supervisor Ryan Clancy, District 4, has been the most outspoken and plans to vote no. He opposes how Milwaukee County could raise additional revenues in the future, calling the tax regressive.

Marcelia Nicholson, chair of the Milwaukee County Board of Supervisors, disagrees.

"This (tax) will sunset once we pay off our unfunded pension liabilities," Nicholson said. "This is not a forever tax."

Tourism officials also spoke in favor of the sales tax increase. Peggy Williams-Smith, president and CEO of VISIT Milwaukee, stressed the tax burden will not just fall on residents, but also commuters, visitors, and tourists.

Estimates show non-residents will provide nearly 30% of the revenue generated by a new sales tax. According to VISIT Milwaukee, visitor spending totaled $2.192 billion in 2022, an increase of 23.5% from the previous year.

To pass, 12 of the 18 supervisors need to vote in favor of raising the sales tax.

A series of town halls will be held ahead of the vote on July 27:

Thursday, July 13

5:30 p.m. at Mitchell Park Domes -- 524 S. Layton Blvd.

Hosted by Supervisor Martinez (District 12), co-hosted by Supervisor Gómez-Tom (District 14) and Supervisor Burgelis (District 15)

Saturday, July 15

11:30 a.m. at Zablocki Library -- 3501 W. Oklahoma Ave.

Hosted by Supervisor Burgelis (District 15) and Supervisor Martinez (District 12)

Tuesday, July 18

5:30 p.m. at Washington Park Senior Center — 4420 W Vliet St.

Hosted by Supervisor Peter Burgelis (District 15), Co-hosted by Supervisor Martin (District 7) and Supervisor Rolland (District 6)

Tuesday, July 18

7:00 p.m. - 8:30 p.m., 5911 W. Grange Ave, Greendale

Hosted by Supervisors Vincent and Logsdon

Saturday, July 22

10 a.m. at 5310 W. Layton Ave, Greenfield 

Hosted by Supervisors Vincent and Logsdon

Tuesday, July 25

5:30 p.m. at Milwaukee Public Library East Branch -- 2320 N. Cramer St.

Hosted by Supervisor Wasserman