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, ensuring that local governments can utilize these funds without affecting their state funding eligibility.

The bill also introduces new legal language concerning the management of various revenues and expenditures related to municipal services, including provisions for tax revenues, emergency expenses, and grant payments. It clarifies the administration of county and municipal taxes, including the retention of 0.75 percent of municipal tax revenues by the state for administrative costs. Furthermore, it sets a limit on certain expenditures related to municipal services, ensuring they do not exceed a calculated inflation and valuation factor. The act is set to take effect on July 1, 2026, allowing local governments time to prepare for these changes.

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