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Funding Local Governments >
A Modest Sales Tax Increase

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In an environment of declining shared revenue from the state, the city and county have come to rely heavily on property tax as a revenue source. Meanwhile, of all the large metro areas across the country that have a sales tax, Milwaukee’s is the lowest.

Wisconsin municipalities have the 7th highest reliance on property taxes in the country.

In Wisconsin, municipalities get about 42% of their revenue from property taxes
​— well above the national average 23%.

A one percent sales tax increase would help address revenue issues and diversify our funding sources to make the city and county less reliant on property tax revenue. ​

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Additional funds raised with the one percent increase would be divided into thirds for:

1. The City of Milwaukee to pay down pension liabilities
2. Milwaukee County to pay down pension liabilities
3. Reduce property taxes

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To head off future pension issues, the goal would be to enter new city
​and county employees in the State of Wisconsin Retirement System.

We need legislative help to make this happen.

​The city and county can not enact this sales tax increase on their own. This measure would require approval of the state legislature and governor.

While it is very rare for MMAC to support tax increases, we enthusiastically support this initiative because of the urgent need to preserve fiscal stability and maintain our region’s competitiveness.