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Waukesha Times

Tuesday, December 24, 2024

Waukesha County proposes new sales tax amid funding shortfalls

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Paul Farrow County Executive | Official Website

Paul Farrow County Executive | Official Website

Waukesha County Executive Paul Farrow has addressed the community's concerns regarding the proposed 0.5% county sales tax. In a statement, Farrow acknowledged the common question, "What were you thinking?" which he frequently hears from residents about the new tax proposal.

Farrow explained that despite his initial reluctance towards supporting a new tax, the need for funding essential services such as law enforcement, courts, and infrastructure has become critical. He highlighted that since 2006, state laws have restricted the county's ability to raise necessary revenue, resulting in insufficient funds to cover rising costs.

According to Farrow, Waukesha County contributes approximately $1.5 billion in sales and income taxes to the state but receives only $60 million back in aid. This places Waukesha second-to-last in per capita state funding among Wisconsin's counties.

The county government acts as an extension of state government by implementing and enforcing laws passed at the state level. However, Farrow pointed out that these mandated services are not fully funded by the state. The proposed 2025 budget shows that around 44% of property tax revenue will be used to address this shortfall.

Despite Waukesha County's reputation for fiscal prudence and maintaining a high bond rating, nearly two decades of property tax limits and unfunded mandates have resulted in a persistent $5 million annual budget shortfall. This has led to cuts in essential positions like Sheriff's deputies and highway patrol workers.

In response to these challenges, Farrow formed a Budget Task Force consisting of community leaders and members of the public. After extensive study, they concluded that implementing a county sales tax is necessary to ensure safety, maintain infrastructure, and support economic strength.

Farrow emphasized that this sales tax would also capture revenue from non-residents who use county services without paying property taxes. With 37% of the workforce living outside Waukesha County and nearly 40% of jail occupants coming from Milwaukee County, a sales tax would distribute financial responsibility more equitably.

The plan includes provisions for reducing property taxes by allocating 20% of first-year sales tax revenue back to taxpayers and providing direct aid to municipalities based on population size. For instance, the City of Waukesha is set to receive over $2 million in aid.

Farrow assured residents that adopting this sales tax aligns with Waukesha County's fiscally conservative principles while promising significant property tax cuts and continued efficient operations.

For more information on the plan to cut property taxes through this initiative, residents are encouraged to visit www.waukeshacounty.gov/CountyExecutive/SalesTax/.

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