Manitowoc County and Racine County Add 0.5% Sales & Use Tax

New County Sales and Use Tax Updates for Wisconsin Dealerships

Two Wisconsin counties have adopted a new 0.5% county sales and use tax, which will affect dealerships and businesses selling to customers in these areas.

Key Dates to Remember:

• 🚗 Manitowoc County: 0.5% sales tax begins January 1, 2025
• 🚗 Racine County: 0.5% sales tax begins April 1, 2025

What This Means for Car Dealerships:

All dealerships registered to collect Wisconsin sales or use tax must update their systems to ensure the correct tax is applied on sales to customers who live in these counties. Even if your dealership is located outside Manitowoc or Racine County, you are responsible for collecting the appropriate tax based on the customer’s location.

Action Steps for Dealerships:

1. Review Your Systems: Ensure your DMS and point-of-sale systems are updated to include the new tax rates.  If you’re using our DigitalDashboard DMS, this change will happen automatically. Make sure you’re ready for this update and check with your third-party provider or tax professional if you need more details.
2. Train Your Staff: Educate your team about the upcoming tax changes to avoid errors.
3. Plan Ahead: Prepare for Manitowoc’s January 1st deadline now, and stay ahead of Racine’s April 1st start date.

For a full list of sales and use tax rates across Wisconsin counties and cities, check the Wisconsin Department of Revenue’s Sales Tax Rate Chart.

Stay compliant and avoid any last-minute surprises!