Both locals and nonresidents will pay a little bit more when the new and higher sales tax for Milwaukee and Milwaukee County goes into effect on goods like meals and autos.
An increase in Sales Tax Passed as a Law
A few examples of how Milwaukee residents’ purchases may be impacted by the new and higher sales taxes. When Milwaukee and Milwaukee County’s new and higher sales tax goes into effect for products like meals and cars, both residents and nonresidents will pay a little bit more.
The county’s higher sales tax will become law starting August 1 after being approved by County Executive David Crowley. On January 1, 2024, both sales taxes are anticipated to take effect. You should be aware of the potential effects before they are put into place, especially if you frequently or frequently buy expensive products.
Here are a few illustrations of how the new and higher sales taxes may affect purchases made in Milwaukee City and Milwaukee County.
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How Milwaukee’s New Sales Tax Will Impact Restaurant and Automobile Prices?
While purchasing food remains exempt from sales tax, eating and drinking out is not. You would currently pay $5.50 in sales tax to the city or county for a $100 bill. You will be required to pay $7.90 in the city and $5.90 in the remaining parts of the county when the new sales taxes go into effect.
When the new sales tax kicks in, how much will a car cost? According to Kelly Blue Book, the national average cost of a new car in the U.S. in May 2023 was $48,528. It’s not apparent if that represents the cost after taxes, but in this case, let’s assume it doesn’t. Considering the in-force sales tax.
The 7.9% sales tax for a resident of the city of Milwaukee would raise the sales tax to $3,833.71 when the new sales taxes are applied to the same vehicle. The 5.9% sales tax in the remainder of Milwaukee County would raise the total taxes due to $2,863.15. A $48,528 automobile would incur $2,426.40 in sales taxes in neighboring counties without county sales taxes because some of those counties simply impose the state’s 5% sales tax. On top of the state’s 5% sales tax, the majority of counties apply the 0.5% implemented by law.
But you can’t just move to another county for a lower sales tax on a car. In Wisconsin, you pay sales tax on car purchases based on where you live rather than where you buy the car. Therefore, regardless of where you buy your car, if you live in the city of Milwaukee, you will be required to pay the entire 7.9% sales tax when both the city and county sales taxes rise.
Here are some effects of the new sales taxes on devices. Let’s say you’re looking to buy a new laptop. Here, we’ll utilize a MacBook Pro as an illustration. The 13-inch model is $1,299 in price. Applying the county’s current sales tax (5.5%), the purchase would increase by $71.45 as a result. The additional sales tax applies to refrigerators, washers, dryers, and dishwashers.
Sales taxes apply to refrigerators, washers, dryers, and dishwashers. In Milwaukee County, you would currently pay $77 in sales tax if you were to spend $1,400 on a new refrigerator. Upon the implementation of the new sales taxes, you would pay $110.60 in the city and $82.60 in the county.
In an example, Consider a couch as our example here. A $2,500 couch, for example. In Milwaukee County, you would currently be required to pay $137.50 in sales taxes on it. You would pay $197.50 in the city and $147.50 elsewhere in the county under the increased sales taxes. In regions devoid of a county sales tax, it would be $125.
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