No Tax on Tips

Passed State Assembly & State Senate this week.  Now heads to Gov Evers for his approval (or veto).

AB 38 would implement an income tax exemption for cash tips paid to an employee that would be sunset in 2028. President Donald Trump signed a law in July to allow workers to deduct up to $25,000 in tips annually from their federal taxable income.

The Wisconsin bill would apply the same policy when it comes to the state income tax. The deduction would apply to tips whether paid by cash or credit.

AB 38 will help labor‑intensive, service‑based small businesses.

Read NFIB’s Statement Here

Preventing Vetoes that Increase Taxes

(Repealing the 400-year property tax increase)

Passed State Senate.  If this resolution passes the State Assembly, it will bypass the Governor and will become referendum question placed on a statewide ballot in November.

Small businesses rely on predictable and transparent tax policy. This constitutional amendment would prohibit the use of the Governor’s partial veto to create or increase taxes or fees—decisions that should always be made through the full legislative process. Ensuring that no single office can unilaterally increase the financial burden on employers gives small businesses the stability they need to plan, budget, and grow.

Voter Approval of Wheel Taxes

Passed State Senate

Local wheel taxes have become an increasingly common revenue tool, often implemented without broad voter input. Requiring referenda on local wheel taxes enhances transparency and ensures that new costs imposed on small‑business owners—who often maintain multiple vehicles—are subject to direct voter approval.