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Bill > SB695

WI SB695

WI SB695
Additional local sales and use taxes and making an appropriation. (FE)

summary

Introduced
12/02/2025
In Committee
12/02/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

Current law allows a county to enact an ordinance to impose sales and use taxes at the rate of 0.5 percent of the sales price or purchase price on tangible personal property and taxable services. The county must use the revenue from the taxes for property tax relief. Under the bill, a county may imposes that county sales and use tax at the rate of 0.1, 0.2, 0.3, 0.4, or 0.5 percent. The bill also allows a county to impose, by ordinance, an additional sales and use tax at the rate of 0.1, 0.2, 0.3, 0.4, or 0.5 percent of the sales price or purchase price on tangible personal property and taxable services. The revenue from those taxes may be used for any purpose designated by the county board or specified in the ordinance. The bill also allows a municipality to enact an ordinance to impose sales and use taxes at the rate of 0.1, 0.2, 0.3, 0.4, or 0.5 percent of the sales price or purchase price on tangible personal property and taxable services. The revenue from those LRB-5555/1 KP:amn&cdc 2025 - 2026 Legislature SENATE BILL 695 taxes may be used for any purpose designated by the governing body of the municipality or specified in the ordinance. The bill also excludes revenues generated from a municipal sales and use tax from being considered in determining eligibility for an expenditure restraint incentive program payment. Under current law, a municipality is eligible to receive an expenditure restraint incentive program payment if its property tax levy is greater than 5 mills and if the annual increase in its municipal budget, subject to certain exceptions, is less than the sum of factors based on inflation and the increased value of property in the municipality as a result of new construction. For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

AI Summary

This bill allows counties and municipalities to impose additional local sales and use taxes with more flexible rates and purposes. Currently, counties can only impose a 0.5 percent sales tax for property tax relief, but the bill expands this to allow counties to impose sales and use taxes at rates of 0.1, 0.2, 0.3, 0.4, or 0.5 percent, with the new additional taxes able to be used for any purpose designated by the county board. Similarly, the bill permits municipalities to enact ordinances imposing sales and use taxes at the same range of rates (0.1 to 0.5 percent), with revenues usable for any purpose specified by the municipal governing body. The bill also excludes revenues generated from these new municipal sales taxes from calculations related to the expenditure restraint incentive program payment, which determines a municipality's eligibility for certain state funding. Additionally, the bill makes technical changes to state statutes to accommodate these new tax provisions, including adjustments to how tax revenues are collected, distributed, and administered by the state. The changes are set to take effect on July 1, 2026, giving local governments time to prepare for the new taxing options.

Committee Categories

Business and Industry

Sponsors (27)

Last Action

Fiscal estimate received (on 01/02/2026)
(1 Companion Bills)

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