Improper Sales Tax for new City of Milwaukee Sales Tax

lwoehlck
Visitor
2 0 0

On January 1, 2024, the City of Milwaukee implemented a new 2% sales tax, and Milwaukee County increased its sales tax rate to 0.9%. The Wisconsin State sales tax of 5% remains unchanged. This means that for sales in the City of Milwaukee, the correct total sales tax is 7.9%, but for cities other than Milwaukee within Milwaukee County, the sales tax rate should only be 5.9%. Shopify is incorrectly charging the City of Milwaukee tax rate for the entire Milwaukee County, meaning I have to check every order and issue 2% sales tax refunds. Using the additional 4 digit zip code does not help, nor does specifying the city.

Wisconsin's department of revenue provides https://www.revenue.wi.gov/Pages/Apps/strb.aspx with a link to  Wisconsin rate and boundary database files.
The incorrectly applied sales tax is also getting some media attention https://www.tmj4.com/news/local-news/bumps-were-expected-wi-dor-addresses-sales-tax-incorrectly-appl....

 

Is there a way to get this fixed?

Reply 1 (1)

lwoehlck
Visitor
2 0 0

Looking at some addresses, I've found

1043 W Theresa Ln, Glendale, WI  53209 - 7.9% (should be 5.9%)

2751 S Lenox St, Bayview, WI 53207 - 7.5% (should be 7.9%)

7124 North Beach Drive, Fox Point, WI 53217 - 5.5% (should be 5.9%)

923 East Manor Circle, Bayside, WI 53217 - 5.5% (should be 5.9%)

3832 N Farwell Ave, Shorewood, WI  53211 - 5.5% (should be 5.9%)

2827 N Pierce St, Milwaukee, WI 53212 - 7.5% (should be 7.9%)

800 W State St, Milwaukee, WI 53233 - 7.9%

7515 Oakhill Ave, Wauwatosa, WI  53213 - 5.9%

7124 W Orchard St, West Allis, WI  53214 - 5.9%

7200 Northway, Greendale, WI  53129 - 5.9%

4611 W National Ave, West Milwaukee, WI 53214 - 5.9%

It's notable that the tax rates for many zip codes that are shared between multiple cities are incorrect. It's also notable that there is no valid *.5% sales tax rate in Milwaukee County. Valid sales tax rates are 5.9% and 7.9%. A 5.5% or 7.5% sales tax rate indicates that the County tax rate (which was 0.5% before January 1st, 2024) is out of date.