Good news! The WRA, along with other associations representing retailers, successfully advocated for an increase in the Sales Tax Retailer’s Allowance – which increases the amount paid to retailers for administration of sales and excise tax. The increase was included in the 2023-2025 state budget signed the first week in July.
Here's some background on the issue. In Wisconsin, all retailers collect sales taxes from the public on behalf of state and local governments. Currently they are provided a “retailer’s allowance” of .5 percent of the taxes they collect - capped at $1,000 per filing period - as compensation for the costs they incur in collecting the tax.
As of October 1, retailers will now be able to retain .75 percent of the taxes they collect, and the total amount per filing period is now capped at $8,000.
What This Means for Restaurants
While it doesn't take out the sting completely of having to pay credit card fees on government taxes collected, it is a big improvement and will mean more money that restaurants don't have to pay out.
Like the repeal of the Personal Property Tax, WRA worked hard lobbying in the Capitol to secure financial relief for all restaurant businesses, especially as inflation and ramifications from the pandemic continue to make it harder to stay in business.
Questions? Contact Susan Quam