Sales Tax in Wisconsin Counties: A Comprehensive Guide

In addition to its cheese, bratwurst, and beer, Wisconsin is well-known for its sales tax. One of the few states, Wisconsin, permits counties to impose a local sales tax in addition to the state’s. We’ll look into which Wisconsin counties impose a sales tax in this post, along with other questions about sales tax nexus that are relevant to it. Which Wisconsin Counties Have Sales Tax?

Currently, Wisconsin has a sales tax in five counties. Brown, Calumet, Outagamie, Racine, and Washington are the names of these counties. These counties have a range of 0.5% to 0.6% for the sales tax. The total sales tax rate in these counties ranges from 5.5% to 5.6% because Wisconsin has a state sales tax of 5%. What Are Nexus Taxes, Exactly?

Nexus taxes, commonly referred to as sales tax nexus, are levied by states or local governments when a company has a significant presence there. A nexus is what is meant by this presence. A physical presence, such as a store or warehouse, or having sales or workers in the state can all result in the formation of a nexus. Do remote workers produce a nexus for sales tax? Remote workers typically do not generate sales tax nexus. However, there can be a nexus if the distant worker is in charge of driving sales in a specific state. For instance, if a remote employee is in charge of sales in Wisconsin, this may result in Wisconsin having a sales tax nexus. Is Income Tax Nexus Created by Sales Tax Nexus?

Income tax nexus and sales tax nexus are two distinct concepts. However, it’s likely that a company will also have income tax nexus in a state if it has sales tax nexus there. This is due to the fact that the same elements that result in sales tax nexus, such as hiring local residents and conducting business there, also result in income tax nexus. What is the NEXUS Test, exactly?

States employ the connection test as a set of standards to establish if a company has a connection in their jurisdiction. State-specific requirements may differ, although they typically include elements like physical presence, sales, and workers within the state. A company is required to collect sales tax in that state if it meets the requirements.

In addition to the state sales tax, five counties in Wisconsin also impose a sales tax. Brown, Calumet, Outagamie, Racine, and Washington are the names of these counties. Sales tax nexus may or may not be created by remote employees when a company has a significant presence in a state or locality. Although sales tax and income tax nexus are two distinct concepts, having a sales tax nexus in a state frequently results in the development of an income tax nexus as well. States utilize the NEXUS test to evaluate if a company has a nexus in the state, and each state has its own set of requirements.