Sales and Use Tax Subcommittee
As a Wisconsin state representative, I serve on 6 committees which hear testimony and take executive action on bills before they are introduced to the entire Assembly for passage. One of the committees is the Wisconsin Assembly Committee on Ways and Means, which deals with government funding and operations. The committee is breaking into 4 subcommittees to provide a revenue-neutral tax plan taking Wisconsin into the 21st century, boosting new economic growth, creating an equal playing field, and spurring job creation across the state.
I’m honored Chairman John Macco (R - Ledgeview) nominated and Speaker Robin Vos (R - Rochester) appointed me to chair the Assembly Ways and Means subcommittee on Sales and Use Tax.
The subcommittee’s mission statement reads: “To examine the cash flow of the state of Wisconsin from the Sales and Use taxation devices, determine the cost/benefit analysis for each exemption, and research burden of compliance on Wisconsin businesses and report back to the committee at large.”
As consumers, we pay sales tax almost every time we buy an item or when we purchase a non-exempt service. Deemed consumption tax, it is charged at the time of purchase for a percentage of the item’s or service’s cost.
According to the Wisconsin Department of Revenue’s website: “Use tax is the counterpart of sales tax. Use tax must be paid when Wisconsin sales tax is not charged and no exemption applies. In addition to the 5% state use tax, a 0.5% county use tax … may apply.”
The subcommittee will also examine a cost benefit analysis of the compliance burden placed upon businesses. For example, if the state collects $10,000 in sales tax from an item but it costs $100,000 for a business to comply, is the revenue gained worth the $90,000 loss to the economy? This is just one example of the issues we will be examining in the subcommittee.
I came to Madison to be a good steward of your hard earned money. Part of that stewardship is ensuring a streamlined tax system geared toward Wisconsin families and businesses now and into the future.