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Possible sales tax in Milwaukee may impact consumer behavior on major purchases

The revenue would mainly go toward public safety and pension costs. If the council approves the sales tax it may change how people think about spending their money on major purchases.
Milwaukee Bankruptcy
Posted at 4:18 PM, Jul 10, 2023
and last updated 2023-07-10 18:15:02-04

MILWAUKEE — Milwaukee's Common Council is expected to vote on a 2 percent sales tax on Tuesday as part of an effort to avoid drastic cuts to city services.

The revenue would mainly go toward public safety and pension costs. If the council approves the sales tax it may change how people think about spending their money on major purchases.

Kitchen appliances such as refrigerators and ovens are already pricey.

"I imagine it would make me try to keep them a little longer, repair them if I have to avoid at 2 percent," Milwaukee resident Daniel Caveney said.

"I don't want to travel too far because then it costs more money too by me traveling. It will save me the cost just buying a refrigerator here in Milwaukee," said Milwaukee resident Willie McDuffie.

At Grand Appliance and TV in Wauwatosa, they charge tax based on where the item is going. Milwaukee residents pay Milwaukee taxes.

"I think we're not going to see too much of a difference as far as customer behavior," sales rep Taryn Fanning said.

Fanning does not think they will see a significant change among Milwaukee customers.

"They may wait until it's completely dead instead of on its way out just because they're gonna be saving a little bit more," Fanning said.

If an item here is heading to Milwaukee after the sales tax is approved, the price difference on say a $1,000 fridge would be about $15 including the state and county taxes. That does not include a potential 0.4 percent bump that Milwaukee County supervisors are expected to vote on.

Fanning explained that the high-end products in the $10,000 and over range are where shoppers will really see the increase.

"That's definitely going to play a role, but if you're spending that kind of money anyway how much does it really matter to you? That's more of a personal question for the consumer," Fanning said.

The sales tax is item 75 on Tuesday's agenda. 10 out of 15 common council members will need to vote in favor for it to pass.


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