AB521-ASA1,1,6 1An Act to renumber and amend 77.70; to amend 20.835 (4) (g), 74.09 (3) (b)
27., 77.76 (3), 79.05 (2) (c), 79.10 (6m) (a) and 79.10 (7m) (cm) 1. a. and b. and 2.
3a. and b.; and to create 20.835 (3) (g), 74.09 (3) (b) 6p., 77.70 (2), 79.10 (2) (c),
479.10 (5f), 79.10 (7m) (bf), 79.10 (9) (bf), 79.10 (9) (c) 4. and 79.10 (11) (e) of the
5statutes; relating to: authorizing an additional county sales tax, creating
6additional property tax credits, and making an appropriation.

Under current law, a county may impose a sales and use tax at the rate of 0.5
percent of the sales price of tangible personal property, goods, and services sold or
used in the county. The tax may be imposed only for the purpose of reducing the
property tax levy.

Under this bill, with the approval of the electors in the county at a referendum,
Milwaukee County may impose an additional sales and use tax at the rate of 1
percent of the sales price of tangible personal property, goods, and services sold or
used in the county. The bill requires that the revenue from the additional tax be used
as follows:

1. Twelve and one-half percent of the revenue must be used to provide a credit
against the county property tax liability of each property owner in Milwaukee

County. The credit is calculated by multiplying the county tax rate by the lesser of
the property's estimated fair market value or a credit base amount determined by the
Department of Revenue. DOR determines the credit base amount by calculating, to
the nearest $100, the estimated fair market value necessary to distribute 12.5
percent of the tax revenue as property tax credits.

2. Twelve and one-half percent of the revenue must be used to provide a credit
against the municipal property tax liability of each property owner in a municipality
in Milwaukee County. The credit is calculated by multiplying the municipal tax rate
by the lesser of the property's estimated fair market value or the credit base amount,
determined by DOR in the same manner as above.

3. Seven percent of the revenue must be used for public health infrastructure
projects.

4. Thirty-four percent of the revenue must be used by Milwaukee County to
pay its operational and capital expenses.

5. Thirty-four percent of the revenue must be distributed to each municipality
in Milwaukee County and used to pay their operational and capital expenses. The
distribution to each municipality is based on the ratio of its population to the county's
population.

Under the bill, the expenditure by a municipality of the distributed tax revenue
will not affect the municipality's payment under the expenditure restraint program.
The bill also provides that the revenue and expenditures will not impact any local
government funding formula.