Creating Fairness and Equity in Sales Tax

This week, I had the opportunity to testify before the Assembly Committee on Ways and Means on a bill I authored with Sen. Dale Kooyenga that allows Wisconsin to bring in more revenue while also providing an income tax reduction for many middle class families across the state.

Back in 2018, the United States Supreme Court ruled in South Dakota v. Wayfair states may collect sales tax from out-of-state retailers that do not have a physical presence in Wisconsin. Following the Supreme Court decision the Legislature passed a law to ensure Wisconsin was in compliance with the ruling.

However, the 2018 law did not account for marketplace providers, such as Amazon, eBay and others, that allow small businesses to sell products using their platform.

The new legislation will allow marketplace providers to collect sales tax (already being collected) on behalf of sellers that use their platform. This will ease the burden on small businesses that primarily sell online and it guarantees online retailers are playing by the same rules that retailers with a physical presence – such as Kohl’s, Walmart, Best Buy, etc. – must follow. The change in law is expected to generate $60 million in new revenue in 2019 and perhaps most importantly, will provide an income tax reduction that will impact most middle class families in Wisconsin.

The legislation is expected to be voted on by the full Assembly before the end of the month and I hope we will have bipartisan support!

Testifying on AB 251.JPG


Joint Finance Addresses Transportation and Healthcare

The Joint Committee on Finance continued its work on the budget this week, taking on Healthcare and Transportation.

On Tuesday, the committee voted to approve $1.6 billion in total funding to increase access to healthcare and reduce costs. The total funding includes increases for personal care workers, direct caregivers in family care and additional funds for nursing homes. This funding increase will help provide adequate care for the elderly and those who need it most.

Late Thursday evening, the committee agreed to a historic investment in funding for roads and transportation by investing $156 million in new funding for counties and municipalities to fix local roads and $320 million more for state highways.

In addition to more funding for local roads, state highways and new revenue streams, the Senate and Assembly have agreed to work on additional transportation reform measures that will ensure dollars are being used wisely in an effort to lower costs and create more efficiency.

Stay tuned as the committee is expected to finish the budget next week.


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