Power Plant Loss Leads Kewaunee County To Hike Its Sales Tax

The closure of a nuclear power plant has led Kewaunee County to implement an extra half percent sales tax, which went into effect Saturday.

Sixty-four of Wisconsin’s 72 counties have imposed the optional tax, making Kewaunee County the latest in a long string of counties to do so. Wisconsin’s state sales tax is 5 percent. Counties are allowed to add the extra half percent and keep the proceeds. Neighboring Sheboygan County also recently implemented the extra tax.

The Kewaunee Power Station closed in 2013, causing the loss of nearly 600 jobs and millions in income for the county, said Kewaunee County Board Supervisor Lee Luft.

“That plant used to generate electric power, which was taxed by the county and actually generated about three quarters of a million dollars in county income,” said Luft, who is chair of the county finance committee.

Luft estimates the increased sales tax will amount to $1 million a year.

Since the 2013 closure, the county has eliminated 16 jobs and made county employees pay more for health insurance, Luft said. Without this sales tax increase, services and road maintenance would have suffered, he said.

The additional tax, approved in late 2016 by the county board, is set to end in 2021, but the county board has the ability to extend it.

Village and town officials were briefed on the matter late last year and a public meeting was held, Luft said, about 150 people attended.

In general, the feedback was that taxpayers “weren’t delighted” about paying the extra tax, but Luft said, “they were sympathetic to the idea that if we’re going to maintain our current level of services, that we’re going to have to do something given the loss of the funding of the Kewaunee nuclear plant.”