Additional Sales Tax Updates coming out of the first half of July 2023: Milwaukee adds a sales tax; several sales tax changes in Colorado
Milwaukee, WI
The mayor of Milwaukee, WI—Cavalier Johnson—has signed an ordinance on Friday, July 14 that approves a 2.00% city sales tax.1 This comes directly after the Milwaukee Common Council voted 12-3 to pass the measure on July 11.
Sales tax in Wisconsin has historically been collected and administered at the state and county levels. However, due to growing budget concerns in the city of Wisconsin, the state legislature and Governor Tony Evers passed and signed a new state law empowering the Milwaukee Common Council to vote on the issue of adding a city-specific sales tax.
The budget gap that Milwaukee was facing for 2024 and 2025 was in large caused by shared revenue frozen by the state legislature and increasing city pension costs. It’s expected that the new city sales tax should generate an additional $194 million a year for Milwaukee.
The new sales tax is expected to go into effect as early as January 1, 2024.
Colorado
All of the following sales and use tax changes and updates released by the Colorado Department of Revenue became effective on July 1, 2023. These changes are only at the local levels, and there are no state-level sales and use tax changes with this updates release from Colorado.2
- Sales & Use Tax Rate changes for self-collected cities
o City of Grand Junction: increasing from 3.25% to 3.39% - County Lodging Tax updates
o The town of Georgetown is no longer included in the Clear Creek County Lodging tax jurisdiction. - New Exemptions from City Sales & Use Tax for the Town of Fairplay applicable to the following:
o machinery and machine tools (other than those used in the processing of recovered materials by a business listed in the inventory prepared by the Department of Public Health & Environment);
o gas, electricity, and other specified fuels for residential use;
o renewable energy components; and
o diapers and incontinence products and period products. - New Exemptions from City Sales & Use Tax for the Town of Mead applicable to the following:
o low-volume sales by charitable organizations; and
o sales for the benefit of Colorado schools, school activities, and school organizations. - New Exemptions from County Sales & Use Tax for Mineral County applicable to the following:
o low-volume sales by charitable organizations; and
o sales for the benefit of Colorado schools, school activities, and school organizations. - New Exemptions from County Sales & Use Tax for San Miguel County applicable to the following:
o low-volume sales by charitable organizations;
o sales for the benefit of Colorado schools, school activities, and school organizations; and
o diapers and incontinence products and period products
Additional Sales Tax Updates are important to know about. Let Clarus Partners help you keep up with it all. Contact us today to see how we can help!
(1) “Mayor Johnson to Sign Sales Tax Ordinance Friday.” Office of the Mayor, City of Milwaukee. News Advisory, 07/14/2023. Web. https://city.milwaukee.gov/mayor/News/Mayor-Johnson-to-Sign-Sales-Tax-Ordinance-Friday
(2) DR 1002: Colorado Sales/Use Tax Rates, 07/01/2023 (https://tax.colorado.gov/DR1002); Sales & Use Tax Rate Changes Effective July 1, 2023, Colo. Dept. Rev., 05/26/2023 (https://tax.colorado.gov/sales-tax-rate-changes)
All links:
Milwaukee, WI:
• https://www.jsonline.com/story/news/politics/2023/06/22/what-you-need-to-know-about-the-proposed-sales-tax-in-milwaukee/70341845007/
• https://www.fox6now.com/news/milwaukee-sales-tax-increase-mayor-johnson-to-sign-ordinance-friday
• https://city.milwaukee.gov/mayor/News/Mayor-Johnson-to-Sign-Sales-Tax-Ordinance-Friday
Colorado:
• https://tax.colorado.gov/DR1002
• https://tax.colorado.gov/sales-tax-rate-changes