MILWAUKEE — Racine County is just one of three counties in Wisconsin that does not have a sales tax, but that may soon change.

The Board of Supervisors is proposing the addition of 0.5% sales tax on certain purchases to help fund government services.

Interim Racine County Executive Thomas Roanhouse said county leaders have been talking about adding a sales tax for years, as costs and community needs increase.

“We have been using reserves for the last three or four years, and can’t use them anymore,” said Roanhouse. “We can’t go any lower, and there isn’t any more COVID-related funding. This (a sales tax) has been part of a financial strategy for five or six years. It’s not a surprise.”

An Average Racine County resident would pay an additional $126 annually, according to the county’s financial estimates. That number could be reduced through retail and service purchases made by non-residents.

The 0.5% sales tax would apply to most retail purchases, like clothing, entertainment, computers, boat docking, office equipment, cable television, landscaping, calls and messaging, rooms and lodging, and certain digital goods. It would also apply to licenses, leases and rentals.

However, the sales tax would exclude food and food ingredients, prescription drugs, medical equipment, insurance, manufactured homes, motor vehicles, alternate fuel, electricity and natural gas (from November to April), and water utilities.

Roanhouse said while a “half-of-one percent” is a small percentage, it would have a big impact.

“According to the Department of Revenue, in our first year, we should generate a minimum of $20 million. That could be up to $25 million. And five, six or seven million dollars of that will be spent from out-of-county residents,” said Roanhouse.

While some Racine County residents said they probably wouldn’t even notice the sales tax, others are firm in not wanting it.

Wayne Clingman of Racine said the public deserves more details on exactly how the added money out of their pockets would be spent.

“I think they owe that to us as a taxpayer, so we know where the money is going, so we know if it is a legitimate increase, because things do go up and things like that. Or, if they are trying to, for lack of a better word, have money to play with. I strongly feel, as do my neighbors, it’s money to play with,” said Clingman. 

Roanhouse said that is why the county is hosting listening sessions to hear directly from residents. He said he wants everyone to know money generated from the sales tax would be dedicated to property tax relief and paying for essential county services.

“It’s the only way we can sustain services,” said Roanhouse. “I have been on the Racine County Board of Supervisors for 10 years. Racine County, in almost every metric, is number one in the state in the delivery of government, its services, with less people and less cost.”

The Racine County Board of Supervisors is expected to approve the sales tax in November. It would then go into effect in April 2025.

After a few community listening sessions during the month of August, Racine County is offering more chances for people wanting to learn about the sales tax, or share their concerns and opinions on it:

• Sept. 17, 2024, at 5 p.m.
  City of Burlington, 224 E. Jefferson St, Burlington, WI 53105

• Sept. 19, 2024, at 5 p.m.
  Village of Caledonia, 5043 Chester Ln, Caledonia, WI 53402

• Sept. 23, 2024, at 5 p.m.
  Village of Union Grove, 925 15th Ave, Union Grove, WI 53182

• Sept. 26, 2024, at 3 p.m.
  City of Racine, 730 Wisconsin Ave, Racine, WI 53403

• Oct. 1, 2024, at 6 p.m.
  Town of Waterford, 415 N Milwaukee Street, Waterford, WI 53185