AB 521

Under current law, a county may impose a sales and use tax at the rate of 0.5

percent of the sales price of tangible personal property, goods, and services sold or

used in the county. The tax may be imposed only for the purpose of reducing the

property tax levy.

Under this bill, with the approval of the electors in the county at a referendum,

Milwaukee County may impose an additional sales and use tax at the rate of 1

percent of the sales price of tangible personal property, goods, and services sold or

used in the county. The bill requires that 25 percent of the revenue from the

additional tax be used to provide residential property tax relief, divided evenly

between county and municipal property tax relief, and that 7 percent of the revenue

be used for public health infrastructure projects. For the remaining 68 percent of tax

revenue, the bill requires that the county use half for its operational and capital

expenses and distribute the other half to the cities, villages, and towns in the county

for their operational and capital expenses. Distributions of revenue to the cities,

villages, and towns are based on their population. Under the bill, the expenditure

by a municipality of the distributed tax revenue will not affect the municipality's

payment under the expenditure restraint program. The bill also provides that the

revenue and expenditures will not impact any local government funding formula.