Evers vetoes GOP bills for no tax on overtime and tips, requiring counties to cooperate with ICE

Gov. Tony Evers rejected GOP measures to eliminate tax on overtime and tips. Evers speaks to reporters on March 3, 2026. (Photo by Baylor Spears/Wisconsin Examiner)
Wisconsin Gov. Tony Evers vetoed Republican bills that would eliminate income taxes on tips and overtime, require counties to cooperate with federal immigration agents and overturn his 400-year veto that provided school revenue limit increases.
No tax on tips and overtime
In July 2025, President Donald Trump signed a tax and spending bill that included provisions allowing tipped workers making less than $150,000 to deduct up to $25,000 in tips annually from their federal taxable income and allowing certain employees who work overtime and make less than $150,000 to claim a tax deduction. Republican lawmakers in Wisconsin introduced proposals to align state income tax policy with those measures.
SB 36 would have given tipped employees a state income tax exemption for cash tips, with a sunset date in 2028.
Evers supported eliminating taxes on tips in his 2025-27 state budget proposal, but GOP lawmakers rejected the provision and instead advanced their bill. Evers’ proposal would have been a permanent change, unlike the Republican proposal.
“We should not be at the whims of a Republican-controlled Congress that has no problem gutting basic necessities and services like food and access to healthcare just to pay for tax cuts for millionaires and billionaires,” Evers wrote in his veto message.
Wisconsin Republicans have sent Evers a number of proposals influenced by the Trump administration and Republican-led Congress to varying success. He signed a SNAP bill with funding for DHS that also included a policy to prohibit SNAP participants from being able to use their benefits to buy candy and soda, while vetoing a bill to opt the state into a federal school choice tax credit program.
Evers wrote that his “expectation” when providing tax relief is to pass proposals that are “real, responsible, and targeted to the middle class.” Evers has signed a number of tax cuts given to him by Republican lawmakers throughout his time in office. As a result of cuts, a 2024 Wisconsin Policy Forum report found that the state and local tax burden on residents had hit a record low in 2024. In 2025, another report found that the tax burdens remained low as incomes rose.
Evers said that the state must also “stay well within our means by still ensuring our tax policy changes are sustainable and will not force us to cut services or raise taxes down the road. Therefore, I am vetoing this bill in its entirety because I object to adopting a temporary income tax provision instead of working to provide comprehensive and lasting relief to Wisconsin taxpayers.”
Evers had a similar message in vetoing AB 461, which would have provided an income tax deduction for overtime. Under the bill, single filers would have been able to claim up to $12,500 per year under the subtraction, while joint filers would have been able to claim up to $25,000. Unlike the “no tax on tips” bill, the change would have been permanent.
“I object to this bill changing the tax code in a way that will treat Wisconsin workers who earn similar wages differently just because of their classification as salaried or hourly workers. A salaried worker who earns $35,000 (and is not eligible to earn overtime compensation) should not pay a different amount in taxes from an hourly worker who earns $35,000 through working overtime,” Evers wrote in his veto message. “We should focus on creating a fairer tax code that provides real, responsible tax relief that supports rather than divides working Wisconsinites.”
Vetoes ICE compliance bill
Evers vetoed AB 24, which would have required local law enforcement in Wisconsin to work with U.S. Immigration and Customs Enforcement (ICE). The bill would have required sheriffs to check the citizenship status of people being held in jail on felony charges and notify federal immigration enforcement officials if citizenship cannot be verified.
Counties failing to comply would be at risk of losing 15% of their shared revenue payments from the state, which help cover the cost of fire, law enforcement and other services.
Republican lawmakers, including Assembly Speaker Robin Vos (R-Rochester) and Sen. Julian Bradley (R-New Berlin), introduced the bill at the start of Trump’s second term, saying that the state needed to support his immigration agenda.
Since the introduction of the bill, the Trump administration has stepped up detaining and deporting immigrants. The federal government sent agents to neighboring Minnesota, where they shot and killed two U.S. citizens, including a Wisconsin native. This week in Wisconsin, ICE detained Salah Sarsour, a Palestinian activist and president of the Milwaukee Islamic Society. More local law enforcement in Wisconsin have also entered agreements with ICE in the last year.
According to a Stateline report, experts have said jails are the easiest place to pick up people for deportation, and more local law enforcement cooperation leads to more arrests.
Evers did not make any specific mention of ICE in his veto message, instead focusing on the potential penalty that local communities could face.
“Republican lawmakers are trying to micromanage local law enforcement decisions by threatening to gut state aid by 15% for our local communities — that’s a non-starter,” Evers wrote. “We shouldn’t be threatening law enforcement with deep budget cuts; we should be working together with local law enforcement to improve public safety, reduce crime and keep dangerous drugs and violent criminals off of our street.”
400-year veto repeal rejected
Evers also vetoed another attempt by Republican lawmakers to repeal his 400-year veto, which extended school districts’ ability to bring in an additional $325 per pupil annually through funding from the state or through property taxes. Lawmakers rejected calls to provide an increase to schools’ general aid in the most recent state budget, meaning most schools have raised property taxes to make use of the revenue authority.
Republican lawmakers have argued that eliminating the veto is the best way to help address rising property taxes and pushed forward SB 389 to do so.
Evers wrote in his veto message that lawmakers “all know that my 400-year veto didn’t raise Wisconsinites’ property taxes — it’s just a heckuva lot easier for them to blame me than it is to tell the truth.” He said he objected to repealing the veto, which was upheld by the state Supreme Court, without providing additional resources to school districts.
“My 400-year veto is here to stay, lawmakers,” he wrote. “Just fund our public schools and get over it.”.
Evers also vetoed AB 460, which would have allowed siblings of students in the state’s school voucher program to participate regardless of their income level. Advocates of the legislation said it would help keep families together in school, but Evers said the bill would expand the cost of the voucher system and further burden struggling public schools.
Currently to qualify for a school voucher program, a student’s family must be below a certain income. A student who has attended a prior year remains qualified even if the family income increases above the limit, but then a sibling who hasn’t attended might no longer qualify to apply for the voucher program.
The legislation went to Evers as the enrollment caps on the state’s voucher programs will sunset next school year. Evers said in his veto message that he objects to increased spending on the state’s voucher program.
“Funding for private parental choice programs remains convoluted and inconsistent across programs,” Evers said. “The cost burden of private parental choice program expansion falls either on local property taxpayers, who already are struggling due to a lack of investment in public schools by the Legislature, or on the state general fund, which draws resources away from students in public schools.”
Vetoes closing holdover appointments loophole
Evers also vetoed AB 248. The GOP bill would have closed the loophole in state law that allows for appointees to stay in their positions past the expiration of their term. The Wisconsin Supreme Court upheld the practice in 2021, when Department of Natural Resources Board member Fred Prehn, appointed during Gov. Scott Walker’s second term, stayed after his term was up, blocking an Evers appointee from taking the seat. The Court upheld the loophole again in 2025, when Wisconsin Elections Commission Administrator Meagan Wolfe stayed after the expiration of her term.
In his veto message Evers called the bill “just the latest in a decade-plus-long effort by Republican lawmakers to abuse the power available to them, undermine basic tenets of our democracy and erode foundational cornerstones of state government that will have impacts on our state for generations.” He noted that while he was in office lawmakers delayed confirming his nominees for key positions and fired others from their positions “for no apparent reason other than being appointed by a Democratic governor.”
“This bill is a representation of the years of Republican efforts to erode our democratic institutions… This bill represents the worst of partisan politics and what can happen when a Legislature chooses to put politics before people,” Evers wrote. “It’s shortsighted, and it is politics at its worst and most dangerous. I will not enable the Legislature to continue this ridiculous exercise.”
Evers signs handful of school bills
Evers also signed two bills introduced by lawmakers to address concerns about investigations into grooming allegations against teachers. The concerns were prompted after a CapTimes news report that found over 200 investigations into teacher licenses due to allegations of sexual misconduct or grooming from 2018 to 2023.
SB 785, now 2025 Wisconsin Act 185, requires the Department of Public Instruction (DPI) to maintain an online licensing portal that is searchable by the public at no cost. The portal will need to include information on license holders under investigation and the name of individuals who have had their licenses revoked.
AB 1004, now 2025 Wisconsin Act 186, prohibits public and private schools from entering agreements that would suppress information on the immoral conduct of an employee, would affect the report of immoral conduct by an employer or employees or require an education employer to expunge information about allegations of findings or immoral conduct.
Evers also signed AB 530, now 2025 Wisconsin Act 189, which prohibits the operation of drones over schools in Wisconsin unless there is authorization by the school’s governing body or by a sheriff or a chief of a local public protection service agency.
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