County Eyes Transit Tax

With support from civic and business groups, the Milwaukee County Board later this month may vote on a measure to ask voters in an advisory referendum whether they support a half-cent local sales tax to finance transit projects.

The board’s Transportation Committee endorsed the measure. A half-cent sales tax would raise about $65 million annually. Supporters believe the tax hike is the best way to finance transit improvements while lowering fares and easing the burden on property taxes. The county uses about $22 million in property tax funds annually for transit.

The county currently collects a half-cent sales tax, and Wisconsin charges a 5% sales tax. The Milwaukee region also pays a 0.1% sales tax to repay debt issued for a new Milwaukee Brewers stadium. State approval would be needed before an increase could be enacted.

Milwaukee County Executive Scott Walker opposes a tax increase and he could veto a referendum measure, forcing the board to attempt to override him.

Walker has floated the idea of entering into a long-term lease of Mitchell International Airport for an upfront cash payment that could finance transit projects, estimating it could generate $1.5 billion. A formal proposal to lease the airport — currently managed by the county — under a federal pilot program that allows for the privatization of five airports, has not yet been made by Walker and a slot has not been reserved with the Federal Aviation Administration. Chicago is currently reviewing the qualifications of a handful of potential bidders interested in leasing Midway Airport.

For reprint and licensing requests for this article, click here.
MORE FROM BOND BUYER