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We Energies corrects billing after Wisconsin man charged sales tax
An Oak Creek man wrote to Contact 6 because he was being charged sales tax on his We Energies bill.
OAK CREEK, Wis. - While reading his monthly utility bill, a statement at the bottom of the page caught Scott Toro's eye.
The message read, "If any portion of your energy use is for residential or small farm purposes, and is not subject to Wisconsin sales tax, please let us know."
Toro was charged Wisconsin sales tax for his home. It came to $11.51 for the 5% WI Sales Tax, and $2.07 for the 0.9% Milwaukee County sales tax.
"When I saw that, I just didn't think that was right," said Toro.
Energy bill charged sales tax
Big picture view:
The Wisconsin Residential Energy Sales Tax Exemption (2025 Wis. Act 15, amend sec. 77.54(30)(a)2., effective October 1, 2025) went into effect Oct. 1, 2025, as part of the biennial budget. It means people in Wisconsin no longer pay sales tax on energy and utility bills.
Under previous law, electricity and natural gas sold during the winter months was exempt from Wisconsin sales tax. It affected bills from November to April. This law extends the exemption year-round.
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The Department of Revenue (DOR) projects the exemption will save Wisconsin households more than $178 million over two years.
The tax exemption does not apply to business properties.
Info in energy bill
The backstory:
After reading his bill, Toro called We Energies. He was given information that seemed to be for a business owner, not a resident.
"That's when I just decided to Contact 6," said Toro.
It didn't take long for We Energies to figure out what happened.
Dig deeper:
A We Energies Spokesperson tells Contact 6 that Toro owns two properties near each other. Neither was flagged as his primary residence. Instead, they were both listed as secondary homes.
The new tax exemption only applies to primary residences. The exemption does not include motor homes, travel trailers, or RVs.
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Toro has lived in his house for 30 years. He also owns a rental property next door. Toro was told We Energies thought his primary house was also a rental property.
"We do not think at all this is a widespread problem," said Brendan Conway, a We Energies spokesperson.
On Toro's next bill, the sales tax line was removed.
Read through your utility bill
What you can do:
We Energies says it's a good reminder to read through your utility bills from top to bottom.
The Source: Information for this report comes from Scott Toro and his utility bills, We Energies and the Department of Revenue.