(The Center Square) – Wisconsin residents will no longer pay sales tax on their electricity and natural gas bills for household use starting on Wednesday.
The change was part of the new Wisconsin budget approved in early July but was set to go into effect on Oct. 1.
It is projected to have more than a $178 million impact over two years.
Sen. Howard Marklein, R-Spring Green, called it effectively a 5% cut on electricity rates when the budget was approved.
The proposal first came from Gov. Tony Evers’ budget proposal.
Evers wrote that the tax cut “means you’ll be keeping more of your hard-earned paychecks in your pockets – and that’s great news for folks, families, seniors, and so many others across our state.”
The sales tax doesn’t apply to transient accommodations, motor homes, travel trailers or other recreational vehicles.
The sales tax cut comes as experts across the country are predicting increased electricity rates as states look to adjust their electrical capabilities to help even the supply and demand as large data centers begin to pop up across Wisconsin.
