Act 12 requires most sales tax revenue to go toward the city’s pension, with remaining funds meant for hiring more police and firefighters. A new fight is erupting over how Milwaukee is spending its new sales tax money. Milwaukee’s decades-long push for more funding came true in 2023, when state law changed to allow the city to approve Wisconsin’s first-ever city sales tax of 2%. Related articleWisconsin Act 12 requires that nearly all of Milwaukee’s sales tax money go toward the pension. In 2024, after the city sales tax took effect, the Common Council and mayor approved 15% pay raises for the city’s elected leaders.