Wisconsin Assembly Bill AB1028

Wisconsin 2025-2026 Regular Session

• Introduced: 2/6/26
• Refer: 2/6/26
• Failed: 3/23/26

Caption

An Act to amend chapter 77 (title); to create 20.566 (1) (gh), 20.835 (4) (gh) and subchapter XIV of chapter 77 [precedes 77.998] of the statutes; Relating to: authorizing counties and municipalities to impose local income taxes on high-income taxpayers and making an appropriation. (FE)

Impact

The implications of AB1028 on state laws are potentially significant, as it would grant local entities the authority to impose taxes directly, which could lead to a more decentralized tax framework. This could result in varying tax rates and structures across counties and municipalities, deviating from uniform state tax policies. If passed, local income taxes could dramatically change funding structures for public services and infrastructure, particularly in wealthier areas where residents may be more able to contribute to local tax bases.

Summary

AB1028 proposes to authorize counties and municipalities to levy local income taxes specifically on high-income taxpayers. This legislation aims to empower local governments to generate additional revenue that can be earmarked for essential services and infrastructure projects. Proponents argue that it provides localities the flexibility to address unique financial needs, particularly in areas with significant economic disparities. By allowing a tailored approach to taxation, the bill presents a potential avenue for more robust municipal finance in high-income regions.

Contention

However, AB1028 has sparked considerable debate among lawmakers and community leaders. Supporters, including various local government officials, argue that it provides necessary funding solutions to address pressing local issues. Opponents, particularly some state legislators and advocates for tax equity, express concern over the fairness of imposing additional taxes on high-income individuals. They argue that this could exacerbate economic divides and lead to an uneven playing field for local businesses competing with one another in different jurisdictions.