MILWAUKEE — Prepare to pay more when shopping in Milwaukee this year.
On the first day of 2024, the sales tax in the city increased by 2% — from 5.5% to 7.5%
Add in Milwaukee County’s sales tax hike of 0.4%, and shoppers in the City of Milwaukee will pay 7.9% sales tax.
This money will help pay for city services and fund the county pension system. But, both shoppers and small businesses said the added strain on their wallets adds up.
Lilo Allen is the co-owner of The Bronzeville Collective MKE, and owner of Papyrus and Charms.
The Bronzeville Collective MKE offers products from more than 30 local entrepreneurs.
Allen said they will all feel the impact of the sales tax increase when it comes to buying supplies to create the items they sell. They don’t want to put the burden of price increases on their customers.
Allen acknowledged that they may have to raise the cost of some things they sell. Still, she said she’s optimistic that the community will continue to support their efforts, as it always has.
“I would like to think that we have a very loyal community base that comes out to support us, and just the unique nature of everything that we offer would incline folks to continue to step in and shop,” said Allen.
Tiffany Miller is the other co-owner of The Bronzeville Collective MKE, and owner of FlyBlooms.
Miller said small businesses depend on community dollars to be successful, and looks at the sales tax as a potential opportunity.
“Maybe this new sales tax will encourage individuals to be more intentional about coming to the smaller shops versus the big box stores,” said Miller. “The greater impact is the sales tax is going to benefit the entire city. I just hope it doesn’t hurt too many of our pockets when we need to make those larger purchases.”
Miller said her team is offering some incentives to encourage customers to keep shopping at the collective, such as discounted shopping all year for those who use a reusable tote bag.
“With that you can save 3 to 5% off of our staple items and brands throughout the year,” she said. “We’re also offering that if you bring your own bag, but we want you to be branded out with Bronzeville Collective MKE.”
Both Miller and Allen said they are determined to keep building their business and try to remind everyone about the greater benefit of shopping local.
“When you support us, we feel the effects of those dollars immediately,” said Allen. “When you support one of us, you’re supporting over 30 local businesses. That money goes directly to them to sow back into themselves so they can continue to have this beautiful space to call home.”
According to the Department of Revenue, sales tax applies to things such as clothing, shoes, homewares, books, computers, furniture, boats, cars and tickets to events. However, sales tax does not apply to medications or most food items at the grocery store.
For more information on the taxes in the city and county, click here.