2012 Mid-Year Sales Tax Distributions Up From 2011 and 2007

The Wisconsin Department of Revenue (DOR) recently posted January–June 2012 sales tax distributions to counties that have enacted the 0.5% sales tax on top of the state’s 5% tax.

For the first six months of 2012, DOR’s distributions to St. Croix County total an estimated $2.45 million, compared to $2.34 million in 2011 and $2.37 million five years ago. The one-year increase in distributions is almost 5% while the 5-year difference is about 3.5%. Distributions for 2007 were selected as a benchmark to coincide with the start of the recession in December 2007.

The four counties of Polk, St. Croix, Pierce, and Dunn comprise the Greater St. Croix Valley region in Wisconsin. All four counties have increases in sales tax distributions over a 1-year and 5-year period. Dunn County has the largest 1-year increase at 8% and Pierce has the largest 5-year increase at nearly 8.5%. The combined distributions at mid-year 2012 for the 4-county region is estimated at $5.44 million compared to $5.212 million last year (a 4.39% increase) and $5.21 million in 2007 (a 4.42% increase).

Wisconsin imposes a 5% tax on the sales of most tangible personal property and on selected services.

Each business is responsible for paying the sale tax to the DOR, regardless of whether the tax is identified on the bill or collected directly from the consumer. Counties may levy local sales and use taxes on the same tax base as the state’s sale tax. Sixty-two of Wisconsin’s 72 counties levy the additional 0.5% sales tax.

In the first six months of 2012, the DOR distributed $141.164 million to the 62 counties. Milwaukee County received $31.95 million while Dane received $21.33 million and Kenosha received $5.078 million.

Meanwhile, the Economics & Statistics Administration of the U.S. Department of Commerce (http://www.esa.doc.gov) announced on July 16, 2012 that American spending in almost every major category was down in June for the third straight month. (http://www.esa.doc.gov/economic-indicators/2012/07/advance-monthly-sales-retail-and-food-services).