State Sales Tax Grew Fastest in Past Five Years

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State Sales Tax Grew Fastest in Past Five Years

The sales tax is Wisconsin state government’s second-largest tax.  Like the income tax, the sales tax is sensitive to economic conditions, though to a lesser degree: Collections tend to decline as unemployment increases and consumer spending tightens.  During the last recession, collections declined in 2009 and 2010 before exceeding 2008 collections in 2011.

Of the state’s main taxes, sales tax collections (+21.8%) increased the most in the past five years, well ahead of income taxes, which climbed 14.2%.  Sales tax collections rose 3.1% in 2017.