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LRB-3312/1
EKL:cjs
2019 - 2020 LEGISLATURE
October 8, 2019 - Introduced by Representatives Goyke, Bowen, Brostoff,
Anderson, Considine, Crowley, Hebl, Haywood, Sinicki, Ohnstad, L. Myers,
Hintz and C. Taylor, cosponsored by Senators Johnson, Larson, Bewley and
Carpenter. Referred to Committee on Ways and Means.
AB521,1,3 1An Act to renumber and amend 77.70; to amend 74.09 (3) (b) 7., 77.76 (3) and
279.05 (2) (c); and to create 74.09 (3) (b) 6p. and 77.70 (2) of the statutes;
3relating to: additional local sales and use tax for Milwaukee County.
Analysis by the Legislative Reference Bureau
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.

For further information see the local fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB521,1 1Section 1 . 74.09 (3) (b) 6p. of the statutes is created to read:
AB521,2,42 74.09 (3) (b) 6p. The amount of credits under s. 77.70 (2) (b) 1. and 2. allocable
3to the property for the previous year and the current year, and the percentage change
4between those years.
AB521,2 5Section 2. 74.09 (3) (b) 7. of the statutes is amended to read:
AB521,2,86 74.09 (3) (b) 7. The amount obtained by subtracting the amounts under subds.
76. and, 6m., and 6p. from the amount under subd. 5., for the previous year and the
8current year, and the percentage change in that amount between those years.
AB521,3 9Section 3. 77.70 of the statutes is renumbered 77.70 (1) and amended to read:
AB521,3,510 77.70 (1) Any county desiring to may impose county sales and use taxes under
11this subchapter may do so by the adoption of an ordinance, stating its purpose and
12referring to this subchapter. The rate of the tax imposed under this section
13subsection is 0.5 percent of the sales price or purchase price. Except as provided in
14sub. (2) (b) and s. 66.0621 (3m), the county sales and use taxes may be imposed only
15for the purpose of directly reducing the property tax levy and only in their entirety
16as provided in this subchapter. That ordinance shall be effective on the first day of
17January, the first day of April, the first day of July or the first day of October
January
181, April 1, July 1, or October 1
. A certified copy of that ordinance shall be delivered
19to the secretary of revenue at least 120 days prior to its effective date. The repeal
20of any such ordinance shall be effective on December 31. A certified copy of a repeal
21ordinance shall be delivered to the secretary of revenue at least 120 days before the

1effective date of the repeal. Except as provided under s. 77.60 (9), the department
2of revenue may not issue any assessment nor or act on any claim for a refund or any
3claim for an adjustment under s. 77.585 after the end of the calendar year that is 4
4years after the year in which the county has enacted a repeal ordinance under this
5section subsection.
AB521,4 6Section 4 . 77.70 (2) of the statutes is created to read:
AB521,3,207 77.70 (2) (a) In addition to the taxes imposed under sub. (1), Milwaukee County
8may adopt an ordinance to impose sales and use taxes under this subchapter at the
9rate of 1 percent of the sales price or purchase price. The ordinance may not become
10effective until approved by the electors of the county at a referendum at the spring
11election or general election. An ordinance adopted under this paragraph shall be
12effective on January 1, April 1, July 1, or October 1, and a certified copy of the
13ordinance shall be delivered to the secretary of revenue at least 120 days prior to its
14effective date. The repeal of an ordinance shall be effective on December 31, and a
15certified copy of a repeal ordinance shall be delivered to the secretary of revenue at
16least 120 days prior to its effective date. Except as provided under s. 77.60 (9), the
17department of revenue may not issue an assessment or act on a claim for a refund
18or for an adjustment under s. 77.585 after the end of the calendar year that is 4 years
19after the year in which the county has enacted a repeal ordinance under this
20paragraph.
AB521,3,2221 (b) The revenue from the taxes imposed by Milwaukee County under par. (a)
22shall be used as follows:
AB521,3,2423 1. The county shall use 12.5 percent of the revenue to provide a credit against
24the property tax liability of each residential property owner in the county.
AB521,4,7
12. The county shall distribute 12.5 percent of the revenue to the cities, villages,
2and towns in the county, and the cities, villages, and towns shall use the revenue to
3provide a credit against the property tax liability of each residential property owner
4in the city, village, or town. The county shall distribute to each city, village, and town
5an amount that bears the same ratio to the total amount distributed under this
6subdivision as the ratio of the population of the city, village, or town to the county's
7population, using the population estimates under s. 16.96.
AB521,4,98 3. Seven percent of the revenue shall be used for public health infrastructure
9projects.
AB521,4,1710 4. From the revenue remaining after the application of subds. 1. to 3., the
11county shall use 50 percent to pay the county's operational and capital expenses and
12shall distribute 50 percent to the cities, villages, and towns in the county, and the
13cities, villages, and towns shall use the revenue to pay their operational and capital
14expenses. The county shall distribute to each city, village, and town an amount that
15bears the same ratio to the total amount distributed under this subdivision as the
16ratio of the population of the city, village, or town to the county's population, using
17the population estimates under s. 16.96.
AB521,5 18Section 5. 77.76 (3) of the statutes is amended to read:
AB521,5,1619 77.76 (3) From the appropriation under s. 20.835 (4) (g) the department of
20revenue shall distribute 98.25 percent of the county taxes reported for each enacting
21county, minus the county portion of the retailers' discounts, to the county and shall
22indicate the taxes reported by each taxpayer, no later than 75 days following the last
23day of the calendar quarter in which such amounts were reported. In this subsection,
24the “county portion of the retailers' discount" is the amount determined by
25multiplying the total retailers' discount by a fraction the numerator of which is the

1gross county sales and use taxes payable and the denominator of which is the sum
2of the gross state and county sales and use taxes payable. The county taxes
3distributed shall be increased or decreased to reflect subsequent refunds, audit
4adjustments, and all other adjustments of the county taxes previously distributed.
5Interest paid on refunds of county sales and use taxes shall be paid from the
6appropriation under s. 20.835 (4) (g) at the rate paid by this state under s. 77.60 (1)
7(a). The Except as provided in s. 77.70 (2) (b), a county may retain the amount it
8receives or it may distribute all or a portion of the amount it receives to the towns,
9villages, cities, and school districts in the county. After receiving notice from the
10department of revenue, a county shall reimburse the department for the amount by
11which any refunds, including interest, of the county's sales and use taxes that the
12department pays or allows in a reporting period exceeds the amount of the county's
13sales and use taxes otherwise payable to the county under this subsection for the
14same or subsequent reporting period. Any county receiving a report under this
15subsection is subject to the duties of confidentiality to which the department of
16revenue is subject under s. 77.61 (5) and (6).
AB521,6 17Section 6 . 79.05 (2) (c) of the statutes is amended to read:
AB521,6,1018 79.05 (2) (c) Its municipal budget; exclusive of principal and interest on
19long-term debt and exclusive of revenue sharing payments under s. 66.0305,
20recycling fee payments under s. 289.645, expenditures of grant payments under s.
2116.297 (1m), unreimbursed expenses related to an emergency declared under s.
22323.10, expenditures from moneys received pursuant to P.L. 111-5, expenditures
23from moneys received pursuant to s. 77.70 (2) (b) 2. to 4.,
and expenditures made
24pursuant to a purchasing agreement with a school district whereby the municipality
25makes purchases on behalf of the school district; for the year of the statement under

1s. 79.015 increased over its municipal budget as adjusted under sub. (6); exclusive
2of principal and interest on long-term debt and exclusive of revenue sharing
3payments under s. 66.0305, recycling fee payments under s. 289.645, expenditures
4of grant payments under s. 16.297 (1m), unreimbursed expenses related to an
5emergency declared under s. 323.10, expenditures from moneys received pursuant
6to P.L. 111-5, expenditures from moneys received pursuant to s. 77.70 (2) (b) 2. to 4.,
7and expenditures made pursuant to a purchasing agreement with a school district
8whereby the municipality makes purchases on behalf of the school district; for the
9year before that year by less than the sum of the inflation factor and the valuation
10factor, rounded to the nearest 0.10 percent.
AB521,7 11Section 7 . Nonstatutory provisions.
AB521,6,1412 (1) Revenue collected from a sales and use tax imposed under s. 77.70 (2) (a)
13and expenditures made pursuant to s. 77.70 (2) (b) shall have no effect on any local
14government funding formula.
AB521,6,1515 (End)
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