FRI AM News: WRA report shows home sales ‘relatively flat’ in July; Restaurant owners weigh in on bill to end income tax on tips

August 22, 2025

— Statewide home sales in July dipped 0.3% over the year as home prices and total listings increased over the same period, the Wisconsin Realtors Association reports.

The group’s July report shows 6,820 homes were sold in Wisconsin last month, down slightly from 6,843 in July 2024. At the same time, year-to-date home sales are 0.5% higher than during the same period of 2024, WRA says.

While sales last month were “relatively flat,” total listings were on the rise. The number of listings in the state increased 7.3% over the year, from 21,452 in July 2024 to 23,109 last month.

“All of our measures of inventory improved in July, which continues a general trend we’ve seen since April,” WRA Board of Directors Chair Chris DeVincentis said in the report. “Addressing the inventory shortage is key to improving sales and moderating the rapid appreciation of prices.”

While large metropolitan counties in Wisconsin had 3.6 months of supply in July, counties with smaller “micropolitan” cities had 4.3 months of supply. And rural counties with populations below 10,000 residents were “essentially balanced” with 5.9 months of supply, WRA says.

That higher inventory level led to better sales growth in rural parts of the state, the report shows, as inventory growth in the state’s northern region rose 13% to 6.1 months of supply while closed sales also increased 12% over last year.

Still, overall affordability for the state “remained low” in July, rising just 1.7% over the year.

Wisconsin’s median home price rose 4.5% over the year from $322,500 to $337,125 last month.

WRA President and CEO Tom Larson notes housing affordability is a national problem. Though the Midwest region is doing better than other parts of the country, he says “we’re not immune” to this problem.

“The moderation of price appreciation and income growth both help, but the stubbornly high mortgage rates have kept Wisconsin affordability near record-low levels,” he said. “Hopefully we see mortgage rates improve over the next year.”

The average 30-year fixed mortgage rate fell from 6.85% to 6.72% over the year, the report shows.

See the report.

— Restaurant owners told lawmakers they supported a bill that would eliminate income tax on cash tips in line with a federal policy in President Donald Trump’s “big beautiful bill.”

Erin Vranas, Parthenon Gyros co-owner and chair of the Wisconsin Restaurant Association Board of Directors, said the bill will “provide stability” for restaurant employees.

Vranas said her employees would use the money from the tax break to pay rent, buy groceries and afford tuition.

“It’s practical relief that goes straight into workers’ pockets for those who need it most,” Vranas said yesterday at an Assembly Committee on Ways and Means hearing.

AB 38 would eliminate income taxes on cash and credit card tips for those making under $25,000 a year.

Author Rep. Ron Tusler, R-Harrison, said tips are different from any other income because they are paid voluntarily in appreciation for service instead of a required cost.

“It is more like a gift than a transactional income, and it never should have been taxed,” Tusler said. “We don’t need to tax these folks.”

Rep. Joan Fitzgerald, D-Fort Atkinson, said her husband works at a restaurant and doesn’t consider his tips as any different from the rest of his income.

She also questioned why Tusler is focused on eliminating the tax on tips, when other lower and middle class workers need the relief.

Tusler said there’s already a disparity in income between jobs, and this won’t worsen that, but he said he would work on other ways to lower taxes for low-income workers.

Tusler added he was “disappointed” no Dems signed onto this bill after they supported Gov. Tony Evers’ proposal earlier this year.

Evers had proposed eliminating tax on tips in his state budget, but Joint Finance Republicans stripped that from the budget.

See more from the hearing here.

— The Senate Health Committee has voted 5-0 by paper ballot to advance a bill seeking to protect independent pharmacies and ensure patients get the medications they need by changing the way the state regulates pharmacy benefit managers.

The committee unanimously signed off on an amendment by lead author and Senate President Mary Felzkowski, R-Tomahawk.

The amendment makes several changes, including eliminating a requirement that pharmacy benefit managers pay a pharmacy or pharmacist a professional dispensing fee at a rate no less than is paid by the state under Medicaid.

Felzkowski’s office told WisPolitics the change was made as a compromise due to concerns about the fiscal impact. The provision was estimated to increase costs to the state Group Health Insurance Program by $20 million annually.

SB 203, also known as “Cole’s Act,” is named in honor of Cole Schmidtknecht. Schmidtknecht died of an asthma attack at 22 years old after a pharmacy benefit manager changed coverage of his daily steroid inhaler, bringing the price from $66 to $539.19, which he couldn’t afford.

Pharmacy benefit managers, or PBMs, are entities contracted to administer or manage prescription drug benefits on behalf of an insurer, cooperative, or other entity that provides prescription drug benefits.

Last session’s version of the bill did not see a floor vote in either chamber.

— The Wisconsin Hospital Association is touting the latest national hospital quality ratings, noting the state is No. 6 in the country for the percentage of hospitals getting four or five stars.

The group yesterday highlighted the Overall Hospital Quality Star Ratings from the Centers for Medicare & Medicaid Services, which evaluates hospitals based on safety of care, patient experience, timely and effective care, mortality and readmissions.

WHA says 65% of hospitals in the state got four or five stars in the CMS ratings, well above the national average of 36%. Along with being the sixth-highest share of four- or five-star hospitals of any state, it’s also the highest percentage for states with at least 50 hospitals, according to the group.

WHA President and CEO Kyle O’Brien says the ratings “reflect a statewide commitment to excellence” that benefits every patient.

“Wisconsin’s hospitals have a longstanding track record of high-quality healthcare that consistently delivers some of the best outcomes in the nation,” he said in a statement. “As a critical community need, high-quality health care is important for all types of employers seeking to attract and retain talent in Wisconsin.”

See the release.

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— Racine-based manufacturer Modine has opened a new facility in India to produce data center cooling equipment for customers in the region.

The company yesterday announced it has opened the 100,000-square-foot facility in the city of Chennai in eastern India, where it will start producing its Airedale data center cooling machinery. The announcement references “accelerated demand” from data center customers in the Asia-Pacific region, which the business aims to meet with an expanded production schedule.

Yesterday’s release also points to increasing use of AI applications, noting the trend driving demand for the company’s cooling equipment. These include “high-efficiency” chillers, indoor air systems, liquid cooling technologies, building management systems and more.

Eric McGinnis, president of climate solutions for Modine, says the new Chennai facility marks a “significant milestone” in the company’s strategy for global growth.

“The data center market in India and across the region is growing rapidly,” he said in a statement. “Establishing in-region manufacturing strengthens our ability to serve [Asia-Pacific] data center customers with speed, precision, and locally tailored solutions.”

See the release.

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