MILWAUKEE — A possible sales tax increase for the City of Milwaukee and Milwaukee County is aimed at helping solve financial issues. However, local businesses are concerned about what that could mean for sales.

Michael Nooyen is the general manager of BBC Lighting in Milwaukee.

Nooyen said he has been thinking about the expected sales tax increase that will come with a shared tax revenue deal from the state.

He predicted it will be on the minds of some consumers.

“They are going to be looking at the increase of pricing,” said Nooyen. “Are they really going to want to drive down to Milwaukee to pick out their lighting or are they going to look at another brick and mortar store outside of the city or even the internet? I’m not sure.”

Nooyen said the expected 2% increase in sales tax in the City of Milwaukee is concerning because he has already seen how purchases have been impacted by recent inflation rates.

“When people actually started thinking about remodeling their house or moving into a new house, they have already gotten a number put into their mind,” he said. “Now, all of a sudden, you are talking about adding on another 2% on to this remodel. They may just cancel this product or not build a new house and stay where they are — therefore stop any purchase whatsoever.”

Nooyen said he is still confident in what BBC Lighting provides for the Milwaukee area. He said he hopes the community will continue to support local businesses impacted by a possible sales tax increase.

One business where the potential tax raise could play out differently, though, is the auto industry.

Jim Tolkan is the president of the Automotive Dealers Association of Metro Milwaukee. He said the dealerships aren’t pleased with an expected sales tax increase but believes the impact will be minimal.

Tolkan explained, for consumers purchasing a vehicle, where they live will have more of an effect on the sales tax they pay, than where they opt to buy a vehicle.

“You only pay what the sales tax is in the city and/or county you live in, so you can feel free to come from anywhere in Wisconsin and buy a car in the city or the county of Milwaukee and the sales tax will remain whatever it is where the vehicle and you reside,” said Tolkan.