SB 865

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.