Showing posts with label Sales Tax. Show all posts
Showing posts with label Sales Tax. Show all posts

Monday, April 27, 2026

Wisconsin data center tax break to cost state more than $2 billion

From JSOnline:

Tom Kertscher
Wisconsin Watch

This story was produced and originally published by Wisconsin Watch, a nonprofit, nonpartisan newsroom. It was made possible by donors like you.

Wisconsin is poised to forgo more than $2 billion in sales tax revenue to subsidize hyperscale data centers built by trillion-dollar companies such as Microsoft and Meta.

Data centers were granted a sales tax exemption in the 2023-25 state budget, which was approved by the Republican-controlled Legislature and Democratic Gov. Tony Evers as a way to attract economic development to the state.

That means the $1 billion data center in Beaver Dam, a $20 billion complex in Mount Pleasant and a $15 billion facility in Port Washington don’t have to pay the 5% state sales tax, or local sales taxes, on purchases for constructing and equipping their facilities.

When the budget passed in July 2023, the scale of the data center boom was so uncertain that the nonpartisan Legislative Fiscal Bureau did not estimate how much state revenue would be “forgone” under the exemption, aside from a hypothetical example.

But now a fiscal bureau projection is in:

The state will be out $1.5 billion in forgone state sales tax revenue during construction, which can take years, plus $369 million annually once the facilities are built.

The estimates apply to the hyperscale data centers under construction in Beaver Dam and Port Washington and the facilities under construction or planned in Mount Pleasant. A much smaller Epic project in Verona is also part of the estimate.

It’s unclear whether the data centers would have been built in Wisconsin without the tax incentive.

“Obviously it's a big number, but it’s right to think that this is not really revenue that the state realistically could have ever captured,” said economist Ross Milton, a state government tax expert at the University of Wisconsin-Madison.

“It seems quite likely that if Wisconsin wasn't providing incentives of these kinds, we wouldn't be seeing these data centers being built here.”

Highlighting the fierce competition for development, 38 states offer data center sales tax exemptions or other tax breaks, according to the National Conference of State Legislatures.

Wisconsin offers sales tax exemptions for a wide array of products and services. One of the largest exempts food bought at the grocery store, which reduced state revenue by about $920 million in 2024.

Tricia Braun, executive director of the Wisconsin Data Center Coalition, a business group that supports data center development, pointed out that the fiscal bureau projection does not include economic benefits from data centers, including taxes paid by data center suppliers.

Wisconsin Watch reported in March that just three Wisconsin companies have done more than $1 billion in business supplying data centers.

Jason Stein, president of the Wisconsin Policy Forum, a nonpartisan think tank, said “the state has good possibilities for recovering” the forgone revenue. That could come from spending by construction workers and income taxes paid by those workers, their employers and permanent data center employees, as well as corporate income taxes and utility taxes, he said.

The unexpectedly large amount of forgone revenue has helped fuel efforts for data center regulation.

State Sen. Jodi Habush Sinykin, D-Whitefish Bay, who requested the estimate, said lawmakers should discuss what the state can get in return for the exemption. She said the exemption could be tied to, for example, requirements to protect the environment.

Habush Sinykin wants the Legislature, which Republicans control, to convene what is known as an extraordinary session to discuss a variety of data center bills, rather than waiting until the next regular session in January.

Sen. Romaine Quinn, R-Birchwood, and Rep. Shannon Zimmerman, R-River Falls, introduced legislation in 2023 that led to the exemption and have proposed expanding it. They did not respond to requests for comment.

Their original legislation received more than 200 hours of lobbying support from Microsoft, power companies such as We Energies and Alliant Energy, and business groups. No one registered to lobby against the bill.

Nationally, state data center legislation has shifted from incentives to regulation.

In 2021 and 2022, 44 of the 45 data center bills introduced in states across the U.S. offered tax and economic incentives, according to an analysis released April 22. Since then, many other types of legislation have emerged. In 2026, only 61 of the 262 state data center bills covered incentives. The vast majority dealt with regulation of energy, environment and transparency.

Some states, including Minnesota, have taken steps to restrict or roll back data center sales tax exemptions.

Data center opponent Shawn Haney, a former elected town board member in Dane County, said he understands that Wisconsin created its sales tax exemption to attract economic development. But he thinks it should be modified so that the state can collect some sales tax revenue from data centers.

“I don't think anybody could have forecasted the size and magnitude of these massive data centers,” Haney said.

“You could do some good things with” the revenue, he said, tossing out a few ideas. “Look at all the roads we have to repair.”

From: https://www.jsonline.com/story/money/business/2026/04/27/wisconsin-data-center-tax-break-to-cost-state-more-than-2-billion/89780055007/

Friday, October 25, 2024

Racine County Board of Supervisors approves 0.5% county sales tax

From The Journal Times.com:

Holly Gilvary


STURTEVANT — After months of deliberating and receiving input from county residents, the Racine County Board voted Thursday to implement a 0.5% county sales tax.

Supervisors voted 13-5 to approve the ordinance adopting the tax, which will take effect April 1, 2025.

Supervisors Valena Coleman, Tom Rutkowski, Melissa Kaprelian, Jody Spencer, Q.A. Shakoor II, Brett Nielsen, Eric Hopkins, Tony Veranth, Don Trottier, Scott Maier, Gary Kolb, Greg Horeth and Tom Preusker voted in favor of the sales tax; supervisors Renee Kelly, Ernie Rossi, Robert Miller, Tom Kramer and Taylor Wishau voted against it.

Preusker offered an amendment to the ordinance that reduced the general obligation debts that will be allocated to property tax relief from $5 million to $2 million, saying it would not be fiscally responsible to pass the ordinance as is based on the county's proposed 2025 budget, the county's current deficit of $17 million and the projected $20 million of anticipated sales tax revenue.

"If we commit five million of the expected 20 (million) to general obligation debt, that means there's only 15 (million) left to solve a gap of 17 million," Preusker said. "I don't think it's responsible to knowingly, tonight, pass an ordinance that knowingly creates a deficit."

The board voted 11-7 in favor of the amendment.

The county will begin allocating some of the sales tax revenue to property tax relief in 2026.

Supervisors Robert Miller and Melissa Kaprelian also offered amendments to the ordinance, but both failed.

Miller proposed allocating "approximately 50%" of the sales and use tax revenue to the portion of the county budget devoted to debt service on general obligation debt to affect direct property relief.

"If we do not do this sales tax in a responsible way with a lot of direct property tax relief, many of our constituents will be justifiably unhappy," Miller said.

The board voted 10-8 against Miller's amendment.

Kaprelian proposed changing the amount of revenue committed to property tax relief from "not less than $5 million" to "up to $5 million based on operational needs, debt services, borrowing for capital projects and state municipal aid approved in the state budget."

Kaprelian said the change would maintain the $5 million target for property tax relief but would allow for more flexibility so that the number could be adjusted through the county's budget process if necessary.

"By binding ourselves to this rigid allocation while facing a $17 million deficit, now we risk sending this contradictory and fiscally irresponsible message," Kaprelian said. "How can we tell our constituents that we're implementing a sales tax to resolve the deficit while simultaneously committing to a specific allocation that could perpetuate that deficit?"

The board voted 9-9 for the amendment, so it failed.

In other business, supervisors:

  • Authorized and approved the memorandum of agreement between the National Association of Conservation Districts and Racine County to accept the Urban Agriculture and Community Conservation Grant for $60,000 to be used at the Racine County Youth and Development Care Center micro-nursery.
  • Authorized the purchase of up to five capital asset vehicles and a transfer of $120,000 within the Public Health 2024 Budget.

Thursday, October 17, 2024

Milwaukee police recruitment under new pressure with state funding at stake

From JSOnline:

David Clarey
Milwaukee Journal Sentinel


Earlier this month, Tamellia Williams joined 36 other recruits at the Milwaukee Fire and Police Academy to graduate and receive their badges after a lengthy recruitment and training process.

After more than six months of hard work and training, they were all officially Milwaukee police officers.

The number of graduates was far from what the city's goal was. The city had budgeted for 65 new officers needed to be on stage, nearly double the 37 which graduated on Oct. 3.

"As I've always said on multiple occasions, we do not want more officers," their boss, Milwaukee Police Chief Jeffrey Norman, told the 36 recruits. "We need more officers."

The need for classes like this is critical for obvious reasons — it allows the Milwaukee Police Department to maintain and grow its staffing — but starting this year the classes have taken on increased significance.

That’s because of Wisconsin Act 12, a 2023 Wisconsin funding law that grants the city more state funding but also requires it to grow its police force to 1,725 officers within 10 years of the city’s new sales tax going into effect earlier this year.

In August, the Milwaukee Police Department had 1,587 sworn officers. Act 12 does not allow grant-funded officers to be counted in its total, meaning the city's roughly 82 grant-funded positions don't count toward that requirement, according to an August staffing report.

The requirement comes as public opinion on policing became widely mixed following police misconduct in the 2010s and the murder of George Floyd during the COVID-19 pandemic. In the time since, officials have described police recruitment as a "crisis" across the country.

In Milwaukee, academics and police told the Journal Sentinel the public perception of police has made recruitment harder and the job unfashionable for prospective candidates. It's left the city and department trying to find ways to change the public image in hopes of increasing recruitment.

Data from Milwaukee bears that dynamic out, with applications down this year and recruit classes like Williams’ short. However, with state funding on the line, the city and police department have to find solutions while finding qualified applicants to apply.

That means convincing more recruits like Williams to apply. The 30-year-old is a Milwaukee native, was previously in the U.S. Army and has a strong ethos behind her decision to join the department.

“To try to give back to a place where I grew up,” she said of why she wanted to join the department. “And showing the younger generation that they don’t have to be afraid of us, that we’re going to help them, and be a light for them.”

Mayor’s budget funds “maximum number” of new officers as officials try to ease process for candidates

The penalties for not meeting Act 12's staffing requirements could cost the city millions of dollars.

Under the law, Milwaukee will lose 15% of its shared revenue from the state if it does not maintain the number of police officers and the daily staffing level in the Fire Department minimally at the numbers from the previous year. The city met that requirement this year and projections show it will make it in 2025, officials said previously.

However, the effort to increase the police force is not solely driven by Act 12 funding. Milwaukee Mayor Cavalier Johnson has said it is a priority of his and for two consecutive years he has proposed in his annual budget what he described as the “maximum number of recruits," or three classes of 65 recruits.

Data from the Fire and Police Commission, the oversight body for Milwaukee’s fire and police departments and which oversees recruitment, shows the city did not reach that figure this year. In the two classes for this year so far, the city has appointed 46 and 33 recruits to its classes, which were each budgeted for up to 65 recruits. Those classes then go on to the academy, where some drop out or do not complete the process for various reasons.

The year prior, they were able to recruit at the maximum, but data shows applications have dropped since 2022.

In 2022, the city received 1,373 applications. The following year that figure was 895 and this year, as of Aug. 31, the city received 930 applications.

Beyond receiving the applications, the city also deals with a no-show rate for the written test, the first step after your application is approved, that hovers around 50%, Todd said and data shows. For instance, in 2023, of the 895 who met the position's minimum qualifications, 488 showed up — meaning 55% of applicants didn't.

The written test is designed to measure "aptitude for and compatibility with the position", according to the city's website.

Recruitment is more difficult now compared to 10 to 20 years ago, said Fire and Police Commission Executive Director Leon Todd. He cited dissatisfaction with police following Floyd's murder and generational differences on what people want from careers and how long they want to have a career for.

"I think there are a lot of young people ... who really do, in their heart of hearts, want to go into something that is community or public service focused," Todd said. "But they don't always necessarily think of being a police officer, as something like that."

Todd’s department is attempting to counter the trends by shifting how recruitment works. The commission has begun allowing applications to be filed throughout the year. Previously, it accepted applications only during certain periods throughout the year.

It also started accepting online testing for potential candidates. Todd hopes this change will improve the 50% no-show rate for police testing. Other testing includes an oral interview, a writing sample and physical ability testing.

In a Sept. 16 meeting of the Fire and Police Commission's recruiting committee, Todd said they also have "nearly tripled" its advertising budget and added a new recruiter.

The city is looking beyond new recruitment too, recently striking a deal with the Milwaukee Police Association, the rank-and-file union for officers, allowing for lateral transfers. That allows the department to hire officers directly from other departments.

About five years ago, the department was at about 1,900 officers. Todd said growing the department’s officers to Act 12’s requirements would mean practical benefits that residents have indicated they want to see.

That’s things like higher clearance rates on crimes; faster dispatch and response times; and increased officer visibility.

"We're doing all these different things to increase our recruitment and improve our testing processes," Todd said. "So, I think we're doing everything that we can, sort of with the long view in mind, to add officers, both in the short term ... and also the long term."

A national 'crisis'

Police recruitment is far from an issue just in Milwaukee, as officials across the nation have noted.

A 2023 U.S. Department of Justice report said: "Law enforcement is at a crossroads as more officers are leaving the field through resignation or retirement and fewer qualified applicants are considering policing as a career.”

A report by the Police Executive Research Forum the same year found that law enforcement agencies were experiencing an increased number of resignations and retirements, at 66% and 65% respectively, from 2020 to 2022. At the same time, applications for open positions were down 69%, the report found.

A 2023 staffing report found in Milwaukee, since 2009, the department shrank by 16%. Starting in 2024, the city began budgeting to increase the department's size, with the goal to be at 1,645 sworn officers this year.

“It’s not a Milwaukee thing, everywhere across the country just cannot get the bodies,” Mayor Johnson said in a previous interview with the Journal Sentinel.


Earlier this year, Mateus R. Santos, an associate professor of criminology at the University of South Florida, studied why people were skipping over a potential field in law enforcement and what might change it.

“It’s awful. We’re going through a hiring crisis in law enforcement,” Santos said.

His research, published in May, surveyed why or why not a pool of 604 undergraduate college students, which he described as the best candidates for policing, would want to enter law enforcement and what factors might shift that. Santos found students were generally disinterested in the career field and worried about possible legal repercussions for making mistakes. Students were concerned about the danger of the field as well.

He said they didn’t understand the practical benefits of the career, like its pay and pension, or the legal protections.

“They don’t think policing is cool. It used to be a lot more cool and now it’s uncool,” Santos said.

The president of the police union, Alex Ayala, said his organization supports the city’s moves to fund full recruitments. But he said the biggest differentiator would be improving pay for officers. He said the union and city are currently negotiating a new contract, with the last one expiring about two years ago.

Currently, Milwaukee pays police recruits a starting salary of $47,673.69, which increases to $63,564.75 after they graduate from the police academy. The maximum pay is $84,743.87, according to a Milwaukee police officer job posting.

He suggested other departments in the state are more attractive than Milwaukee.

"You’re not addressing the root issue of why you’re getting 35 recruits," he said. "The wages are low."

Milwaukee police attempt to shift public perception

Billie Ellis is a Milwaukee police officer and one of two recruiters, along with Ralph McClain, with the department. She said the top challenge they face in recruiting new officers is the perception of policing due to police misconduct.

The most damaging misconduct issue was in 2020, when Minneapolis Police Officer Derek Chauvin knelt on George Floyd’s neck for over nine minutes, with the officer maintaining his knee on Floyd until he died. Chauvin was later found guilty of murder, and it led to protests against policing across the country.

Public surveys from Pew and Gallup showed at the time public opinion on police was largely mixed, with stark differences in opinion by political affiliation and race. It appeared to be further negatively impacted – dropping to 43% confidence in 2023, according to Gallup.

Polling shows opinion of policing started to rebound recently.

Marcey Patterson, manager in the Milwaukee police’s office of community relations, engagement and recruitment, said the department has had to rebuild trust with the community following Floyd’s murder.

“In my experience, in the last two years, the community seems to welcome us better,” she said. “I think we’re just now at a space where we are rebuilding the trust with the community… I think being able to be consistent with building that trust, I think, is important.”

Milwaukee’s department has attempted to engage with the community in response, the recruiter Ellis said. In the last two years, they have emphasized police as "everyday people" in social media videos and held more events

“I think it’s getting better for us,” Ellis said, and noted it was difficult following COVID-19. “We try to humanize the badge … I think it’s starting to open people’s eyes they’re just trying to do their job.”

Meghan Stroshine, an associate professor of criminology and law studies at Marquette University, said she believed efforts to shift the image of police from "very militaristic" to one that is more community-oriented would be an effective tactic.

“I think that much of the dissatisfaction with police, the lack of trust in police, is tied to a particular type of policing − more aggressive policing," Stroshine said.

The push to change the perception comes at the same time as pressure from Act 12’s funding requirements.

But, between both, Ellis said she feels the most pressure from other officers, as retirements through the department over the last two years have created a shortage of officers.

“I see my fellow officers out there struggling, because we’re so short staffed,” she said. “Everybody’s looking at me and Ralph like, 'What are you guys doing?’”

Monday, October 14, 2024

Racine County proposes $238M budget for 2025 that includes cuts

From The Journal Times.com:

Holly Gilvary

STURTEVANT — Interim Racine County Executive Thomas Roanhouse presented the county’s proposed $238 million 2025 budget to the county board last Tuesday.

Roanhouse said the budget’s $5.1 million decrease from last year is largely because funding from the American Rescue Plan Act is ending.

The proposed tax levy for 2025 is $64.3 million, a decrease of 0.4%.

Roanhouse said that at the beginning of the budget season, the county was confronted with a $17 million deficit.

“We successfully reduced the deficit by reviewing and trimming line items, utilizing shared revenue, factoring in net new construction and implementing a series of belt-tightening measures,” he said.

Cuts in the budget include reducing funding to the Racine County Economic Development Corporation by 62%; a $200,000 reduction in the Workforce Division budget; the decision to leave two county positions unfunded; and the freezing of all employee merit pay increases.

“These measures, while necessary, reflect the ongoing challenge of balancing rising operational costs against declining revenues, making this an especially complex and challenging budget cycle,” he said.

Highlights of the budget include: the opening of the Youth Development and Care Center; the construction of roundabouts at County Highways A and J and Highways U and G; highway improvements along highways KR and T; replacing windows at the Racine County Courthouse and installing energy-efficient LED lighting; and completing the refurbishment of the courthouse’s sixth-floor courtroom.

Roanhouse also touted the upcoming Microsoft data centers in Mount Pleasant, calling it a “transformative moment” for the county.

“This development will bring more than just jobs — it will attract talent, investments and additional business opportunities,” he said.

Roanhouse mentioned the proposed 0.5% county sales tax multiple times throughout his presentation, saying the county’s future would be at stake without it.

“The reality is that without the sales tax, we will be forced to make severe cuts that will compromise public safety, infrastructure and key services across the county,” Roanhouse said.

In other business, the board:

  • Approved a resolution naming the upcoming Youth Development and Care Center in honor of former County Executive Jonathan Delagrave.
  • Authorized a non-cash lease for Racine County Case Eagle Lake Park in Rochester for research and demonstration farming purposes by the Watershed Protection Committee for 2025-28.