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SALES TAX REVENUE: Buyers generate $46.1 million in first four months with new tax

Posted at 10:26 PM, May 22, 2024

MILWAUKEE — As of Wednesday, the city of Milwaukee has received $46.1 million in city sales tax distributions from the Department of Revenue.

The two-cent sales tax went into effect back in January.

A spokesperson for the mayor's office said it's still too early to draw conclusions on how much revenue the 2% sales tax will bring in this year and that they were comfortable with the numbers.

It's estimated that the city could bring in $190 million in sales tax revenue in its first year.

Kamar Carter owns House of Vitali-Tea in the Sherman Phoenix Marketplace.

Kamar Carter
Kamar Carter owns House of Vitali-Tea at Sherman Phoenix. He says the 2% Milwaukee sales tax has made an impact when buying his supplies and on his customers. His daughter, Ruqayya, helps out at the shop.

He's taken note of the changes in cost due to Milwaukee's 2% city sales tax.

"Even when I go get my own supplies, I see the difference, even before the year started," said Carter. "Then, when January came, it was a tremendous increase."

The tax applies to items like clothing, electronics, and meals sold at a marketplace or restaurant. It also includes the juices and teas that Kamar sells.

Other business owners TMJ4 spoke with had mixed responses. Some say they didn't notice the increase, and neither did their customers. Others say it's had an impact, especially on their customers.

"They come, and I may tell them a product is $10, but when I ring it up on the machine, now it's like $11," said Carter. "They are looking at me like I lied to them or something."

Factor in the state sales tax at 5% and the Milwaukee County sales tax at 0.9%, which brings the total amount paid on items to 7.9% in the city.

"I can't say that I've noticed it very much," said Steve May of Milwaukee.

Steve May
Steve May says the 2% sales tax in Milwaukee hasn’t really changed his buying habits.

May also said that, in the grand scheme of things, the increase isn't noticeable due to prices on items going up across the board.

"If you're buying the same thing, it rounds up a little higher, but essentially, it hasn't changed my buying decisions, where I shop, or anything," said May.

Other customers with whom we spoke said they hadn't noticed the change that much.


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