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Bill

AB 1028

Relating to: authorizing counties and municipalities to impose local income taxes on high-income taxpayers and making an appropriation. (FE)

2025-2026 Regular Session Introduced by Ryan Clancy and 6 co-sponsors

Bill authorizes Wisconsin counties and municipalities to impose local income taxes on high-income earners, expanding local government revenue authority previously restricted by state law.

Failed to pass pursuant to Senate Joint Resolution 1
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WeVote Research Nonpartisan
Bill Summary · AB 1028

Legislative bill overview

AB 1028 would authorize Wisconsin counties and municipalities to establish their own local income taxes specifically targeting high-income taxpayers. The bill includes a fiscal appropriation, indicating state funding mechanisms or budget impacts accompany this authority grant.

Why is this important

This represents a significant shift in Wisconsin's tax structure, as local income taxes are currently restricted or prohibited in most Wisconsin municipalities. The proposal could substantially increase revenue for local governments facing budget pressures, but would also create a new layer of taxation that could affect resident and business location decisions, particularly for higher earners.

Potential points of contention

  • State preemption concerns: Wisconsin has historically limited local taxation authority; this directly challenges that model and may conflict with existing state law restrictions on municipal income taxes
  • Tax burden on high earners: Proponents of lower taxes argue this creates disincentives for wealthy individuals and businesses to remain in Wisconsin, while supporters contend the wealthy should shoulder infrastructure costs
  • Revenue fragmentation: Creates 72+ separate potential tax jurisdictions, complicating tax administration and potentially benefiting some municipalities while disadvantaging others without high-income residents
  • Economic competitiveness: Risk that localized income taxes make Wisconsin less attractive compared to neighboring states without such provisions

Compiled from official sources — confirm details with the bill’s official record.

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