OUTAGAMIE COUNTY, WI (WTAQ-WLUK) – Shopping just got a little more expensive in Outagamie County.
As of January 1st, the county is operating at a 5.5% sales tax. The tax amounts to one cent on a $2 purchase.
The county board expects the sales tax increase to generate $20 million. The board plans to allocate the revenue in three different ways.
“They want to put it towards property tax reduction. That’s about half of it. There’s one-fourth that will be going to cities, towns, villages, school districts. The rest will be allocated for capital projects,” Outagamie County Executive Tom Nelson said.
Outagamie County Board Chair Jeff Nooyen says about 25% of the money from the tax increase would come from visitors.
Nooyen tells FOX 11 the sales tax increase will reduce the property tax levy and borrowing.
“Instead of seeing a continued increase in borrowing, that’s going in the opposite direction. And that’s just like I said fiscally responsible and the right thing to do so we don’t continue to borrow our way into the future.”
Nelson tells FOX 11 he opposes the tax increase.
“One of the reasons why I oppose this, this is a very regressive tax. This is the kind of tax that hits people who can least afford it.”
Nelson previously vetoed the proposal, which was overridden by the board.
Nooyen says many residents he’s spoken to feel positive about the sales tax increase. Nelson says residents he’s spoken with are opposed.
One Appleton resident FOX 11 spoke to disapproves of the increase.
“It affects the lower-income classes more than upper income. If they need more tax money they should get it from richer people,” Valentino Juergens said.
An Outagamie resident filed a legal claim against the county for its use of the sales tax in September.
Brown County implemented its sales tax at the start of 2018. A challenge to that sales tax remains pending in circuit court.
