Assembly Bill 692 proposes significant amendments to Wisconsin's local sales and use tax statutes, allowing counties to impose taxes at rates of 0.1, 0.2, 0.3, 0.4, or 0.5 percent, expanding the current limitation of only a 0.5 percent rate. Counties and municipalities are granted the authority to enact ordinances for additional sales and use taxes at these rates, with the revenue designated for purposes determined by their respective governing bodies. Importantly, the bill specifies that revenues from municipal sales and use taxes will not be factored into eligibility for expenditure restraint incentive program payments, thereby providing local governments with increased flexibility in tax rates and revenue usage.

The bill also introduces new legal language concerning the management of various revenue sources and expenditures related to municipal services, including provisions for taxes imposed under section 77.702, payments under section 79.038, and expenditures related to tax incremental districts. It establishes guidelines for managing recycling fee payments, grant payments, and unreimbursed expenses from emergencies, ensuring that expenditures do not exceed a calculated limit based on inflation and valuation factors from the previous year. The act is set to take effect on July 1, 2026, allowing municipalities time to prepare for the new regulations.

Statutes affected:
Bill Text: 20.566(1)(g), 20.566, 20.566(1)(gi)(title), 20.835(4)(g), 20.835, 20.835(4)(gi)(title), 77.70(1), 77.70, 77.701(title), 77.701, 77.71(intro.), 77.71, 77.71(1), 77.71(2), 77.71(3), 77.71(4), 77.71(5), 79.05(2)(c), 79.05