The Waukesha County Board is set to approve a new sales tax on Tuesday, October 22, which would raise $50 – 60 million per year, despite county government only needing $5 million in 2025 to close its budget gap. The .5% sales tax is raising eyebrows throughout the county due to its size and the speed at which the Waukesha County Board is set to approve it, in only 19 days with limited public input since it was introduced. The tax would begin July 1, 2025.

The Waukesha County Business Alliance is coming out strongly against rushing the new sales tax through without sufficient public input and discussion, releasing several statements to the media and its members, as well as a text on Saturday, October 19, urging members to sign a petition. The Republican Party of Waukesha County also issued a statement urging County elected officials to slow their roll. 

Meanwhile, County Sheriff Eric Severson and District Attorney Susan Opper have issued statements in favor of passing the new sales tax to shore up the strained budgets for county law enforcement and the justice system. Both Severson and Opper attributed budget strains, in part, to rising crime caused by non-county residents. 

Opper said, “Crime in our county, especially crime committed by non-county residents, is on the rise. In fact, over 40% of our criminal court cases involve non-county residents. Unfortunately, county property taxpayers have been left paying the bill.” Severson added, “On a given day, up to 50% of the individuals in our county jail and in our Huber program are non-county residents, most coming from Milwaukee County. Severson cited examples of service cuts the sheriff’s office has made in recent years to reduce costs, including closing the Huber facility, and eliminating nine correctional officers, seven deputy sheriffs and four detectives/investigators. 

In his introduction of the sales tax ordinance, Waukesha County Executive Paul Farrow reported that the county has experienced a budget shortfall of $5 million in 2024 and is projected to be another $5 million short in 2025. These shortfalls have caused the county to make numerous cuts to programs and staff over the past few years. The budget deficit is projected to rise to $58 million by 2030. 

The State of Wisconsin’s shared revenue formula is the biggest cause cited in the current budget crisis, as county taxpayers provide $1.5 billion in sales and income taxes to the state each year but receive only $60 million in return. 

Currently, Waukesha, Racine and Winnebago Counties are the only counties in Wisconsin without a sales tax. The state sales tax is 5%, and the new county tax would be added to the tab for all taxable expenses made in the county, with the new total sales tax rising to 5.5%. Considering inflation has increased prices across the economy by roughly 20% over the past four years, this new tax adds another stressor for families and businesses struggling to make ends meet. 

How Did We Get Here?

In April, Waukesha County created a Budget Task Force comprised of 30 municipal leaders, business representatives, County Board Supervisors and public members to discuss options and priorities for the county budget over the next five to 10 years when budget deficits are predicted to escalate. 

The Task Force’s final report was presented to the County Board on August 27. It included options to increase tax revenue including the new sales tax, a vehicle registration fee (wheel tax) and a referendum that would allow the county to exceed the property tax levy limits under state law. According to the Task Force report, the sales tax option is projected to raise the most revenue of the three options, will address the entire budget gap for years to come and will share the cost with non-residents who use county services. 

County Executive Paul Farrow introduced the sales tax ordinance on October 3 and the Waukesha County Board’s Finance Committee approved it on October 14. Final approval by the full County Board on October 22 is the final step to approve the new sales tax. 

Farrow has explained that the revenues raised from the sales tax would not only be used to close the county’s budget gap, but roughly 40% of the revenue would be used to reduce property taxes at the county and municipal levels. The County Executive’s Office has released several documents to provide greater context to the sales tax issue which are available below: 

• Sales Tax Ordinance Overview
• Fact Sheet
• Frequently Asked Questions

How to Engage County Leadership 

Residents who would like to weigh in on the sales tax can contact their County Supervisor in advance of the sales tax vote, or attend the County Board meeting on October 22 at 7 pm at the Waukesha County Courthouse. The meeting will also be livestreamed for those who would like to watch it from home. 

UPDATE: October 22

Waukesha County Executive Paul Farrow withdrew the sales tax ordinance before the County Board meeting this evening. In a statement, he said, “My decision to withdraw the sales tax ordinance from consideration is democracy in action. Postposing the measure will allow for more public input and provide for an opportunity to educate residents on the county’s financial challenges. I will work with the County Board to examine possible legislative remedies, including the potential to levy less than the 0.5% county sales tax currently allowed under state law.”