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WI SB865
WI SB865A tax credit for certain sales and use taxes paid on services sold through an amusement device. (FE)
summary
Introduced
01/23/2026
01/23/2026
In Committee
01/23/2026
01/23/2026
Crossed Over
Passed
Dead
Introduced Session
2025-2026 Regular Session
Bill Summary
This bill creates an income and franchise tax credit for the total amount of the additional Milwaukee County sales and use tax and the sales and use tax imposed by a municipality that is paid by a person on sales of taxable services purchased through an amusement device. The bill defines an “amusement device” as a single or multiplayer device, machine, or game played for amusement. Current law subjects the furnishing, for payment or other consideration, of access or use of amusement, entertainment, or recreational devices or facilities to sales and use taxes. Also, under current law, the City of Milwaukee is the only municipality that is authorized to impose a sales and use tax, which it imposes at a rate of 2 percent. Under current law, Milwaukee County is authorized to impose an additional sales and use tax of 0.4 percent. The revenues from both of those taxes must generally be used to pay for the unfunded actuarial accrued liability of the pension systems of the City of Milwaukee and Milwaukee County, respectively. LRB-5921/1 KP:ads&emw 2025 - 2026 Legislature SENATE BILL 865 For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
AI Summary
This bill establishes an income and franchise tax credit for individuals and businesses in Milwaukee County for sales and use taxes paid on services purchased through an "amusement device," which is defined as any machine or game played for amusement. Currently, Wisconsin law allows cities, including Milwaukee, and Milwaukee County to impose sales and use taxes, with revenues often designated for pension system liabilities. This new credit, effective for taxable years beginning after December 31, 2024, will allow taxpayers to claim back the county sales and use tax (0.4%) and any municipal sales and use tax imposed on these amusement device services, up to the amount of their income and franchise tax liability. The credit can be carried forward for up to 20 years if not fully utilized in a given year, and while partnerships, tax-option corporations, and limited liability companies cannot directly claim the credit, they must calculate and pass it on to their partners, shareholders, or members based on ownership interest.
Committee Categories
Budget and Finance
Sponsors (4)
Last Action
Fiscal estimate received (on 02/12/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://docs.legis.wisconsin.gov/2025/proposals/reg/sen/bill/sb865 |
| Fiscal Note - SB865: Fiscal Estimate From DOR | https://docs.legis.wisconsin.gov/2025/related/fe/sb865/sb865_dor.pdf |
| BillText | https://docs.legis.wisconsin.gov/document/proposaltext/2025/REG/SB865.pdf |
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