Sales tax option
To the Editor:
Dear Sheboygan County constituents:
As elected officials and fellow taxpayers, we don’t like the thought of instituting a ½ percent county sales tax anymore than you do. However, we believe that if the services and programs that we are statutorily required to provide are to be maintained, the county has no other realistic option.
Why do we find ourselves in this undesirable position? Seventy-five percent of the $44 million raised by county property taxes are spent to fund state-mandated programs. The state of Wisconsin continues to fail to meet its obligation to fund the programs that it mandates. This funding shortfall will result in Sheboygan County facing a structural deficit of approximately $3.87 million in 2011.
If Sheboygan County enacts a ½ percent sales tax, it will generate an estimated $8.9 million, $1.8 million of which will be generated by tourists visiting our county.
At first glance, you may think that the revenue projected to be generated by tourists seems high; however, $1.8 million is only .1 percent (.001) of the approximate $1.8 billion, yes billion, spent on all goods and services in Sheboygan County annually. This amount does not include items exempt from sales tax which include mortgage and rent payments, groceries, medication, medical equipment, fuel and electricity.
How will the sales tax affect my family? The estimated cost to the average family would be $140 a year, less than $12 per month. Wisconsin State Statutes require that sales tax revenue be used for property tax relief so part of that cost would be offset by reductions in your property tax.
The option of a ½ percent sales tax has been available to Sheboygan County since 1986. Through prudent fiscal management, Sheboygan County has been able to balance its budget and remain financially sound without the use of a sales tax for the past 24 years. Unfortunately, that is no longer possible.
It has been suggested that Sheboygan County would not need to implement a sales tax if there were further reductions in the work force. In order to reap the same financial benefit as the sales tax, Sheboygan County would have to reduce its work force by at least 25 percent or over 220 employees. A work-force reduction of this magnitude would seriously jeopardize our ability to continue to provide essential services.
We acknowledge that the sales tax is not a fix all. As we have in the past, we will continue to look for ways to increase efficiencies, minimize costs and reduce staff whenever possible in order to continue to provide cost-effective services.
We also understand that the County Board is in a very difficult position. Most supervisors will acknowledge that the county cannot continue on its current financial path. They are faced with the choice of drastically reducing services or passing a new tax. Neither choice is very palatable, especially in these trying economic times.
Please contact your Sheboygan County Board representative. Let them know that you appreciate the work they have done to keep county property taxes down, but also let them know what services and programs are important to you, and ask them how they plan to continue to provide those services while still keeping Sheboygan County financially sound.
In closing, as distasteful as a ½ percent sales tax is, we believe that it is the only prudent fiscal option that will maintain services and provide property tax relief. Trying to solve this fiscal challenge by cutting staff alone will only result in you, our constituents, paying higher property taxes for fewer programs and services while allowing the financial dilemma facing Sheboygan County to remain unresolved.
Michael Helmke, Sheboygan County sheriff; Joe DeCecco, Sheboygan County district attorney;
Julie Glancey, Sheboygan County clerk; Nan Todd, Sheboygan County clerk of courts; Laura Henning-Lorenz, Sheboygan County treasurer; Ellen Schleicher, Sheboygan County register of
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