After months of negotiations, a bipartisan deal has been reached on how to allocate the state’s $1.8 billion budget surplus. The National Federation of Independent Business (NFIB), Wisconsin’s largest small business advocate, announced its support of the new legislation, citing the much-needed tax relief measures contained in the bill.

“Main Street is really facing a lot of hurdles right now, including continued inflationary pressures leading to higher prices combined with increasing taxes,” explained NFIB State Director Luke Bacher. “NFIB supports getting the surplus funds out of Madison and back into the hands of taxpayers in the form of real, direct tax relief.”

Specifically, the Surplus Deal comprises the following main components:

–  $232 million for the exemption of income tax on tips and overtime wages.

–  $815 million in the form of one-time surplus rebate payments of $600 for married joint filers and $300 for individuals.

–  $350 million in property tax relief to be immediately reflected on property tax bills this December.

–  $300 million in education funding specifically for special education costs.

“In addition to rising costs, property taxes have been skyrocketing, making the budgets of many businesses and families stretched to a near breaking point,” said Bacher.  “The small businesses of Wisconsin will gladly welcome lower taxes instead of more government spending on new, unnecessary programs.”

The surplus deal was the result of a compromise between Democratic Governor Tony Evers and the Republican leaders of the Legislature.  Although neither house of the legislature is currently in session, they will be called back into a Special Session by the governor to pass the measure on May 13th.