LRB-2529/1
MES:jld:jf
2003 - 2004 LEGISLATURE
June 12, 2003 - Introduced by Representatives Hahn, Bies and Townsend.
Referred to Committee on Ways and Means.
AB404,1,6 1An Act to amend 66.0615 (1) (a), 66.0615 (1) (f), 66.0615 (1) (h), 66.0615 (1m)
2(a), 66.0615 (1m) (b), 66.0615 (1m) (c) 1., 66.0615 (1m) (c) 2. a., 66.0615 (1m) (c)
33., 66.0615 (1m) (c) 5., 66.0615 (1m) (d) 1., 66.0615 (1m) (d) 3., 66.0615 (1m) (d)
44., 66.0615 (2) (intro.), 66.0615 (2) (a), 66.0615 (2) (c), 66.0615 (2) (d) and
566.0615 (3) of the statutes; relating to: authorizing counties to impose a room
6tax.
Analysis by the Legislative Reference Bureau
Under current law a city, village, or town (municipality) and a local exposition
district may impose a room tax. The room tax is on the privilege of furnishing, at
retail, rooms or lodging to transients by hotelkeepers, motel operators, and other
persons who furnish accommodations that are available to the public, irrespective
of whether membership is required for use of the accommodations.
Generally, the maximum room tax that a municipality may impose is 8%. A
single municipality that imposes a room tax may create a commission, which is
defined as an entity to coordinate tourism promotion and development. If two or
more municipalities in a zone impose a room tax, they must create a commission.
Current law defines a zone as an area made up or two or more municipalities that,
those municipalities agree, is a single destination as perceived by the traveling
public. Current law requires a commission to contract with an organization to
provide staff, development, or promotional services for the tourism industry in a

municipality if a tourism entity does not exist in that municipality. A tourism entity
is defined as a nonprofit organization that existed before January 1, 1992, that
provides staff, development, or promotional services for the tourism industry in a
municipality.
A municipality that first imposes a room tax after May 13, 1994, must spend
at least 70% of the amount collected on tourism promotion and development, which
may be spent directly by the municipality or forwarded to the commission for its
municipality or zone.
This bill authorizes a county to impose a room tax, subject to the same 8%
maximum tax that a municipality may impose. At least 70% of the amount collected
under a county's room tax must be spent on tourism promotion and development.
Under the bill, a county may create a commission and participate in a zone to the
same extent as municipalities may do so under current law.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB404, s. 1 1Section 1. 66.0615 (1) (a) of the statutes is amended to read:
AB404,2,42 66.0615 (1) (a) "Commission" means an entity created by one municipality or
3county,
or by any combination of 2 or more municipalities or counties in a zone, to
4coordinate tourism promotion and development for the zone.
AB404, s. 2 5Section 2. 66.0615 (1) (f) of the statutes is amended to read:
AB404,2,86 66.0615 (1) (f) "Tourism entity" means a nonprofit organization that came into
7existence before January 1, 1992, and provides staff, development or promotional
8services for the tourism industry in a municipality or county.
AB404, s. 3 9Section 3. 66.0615 (1) (h) of the statutes is amended to read:
AB404,2,1210 66.0615 (1) (h) "Zone" means an area made up of any combination of 2 or more
11municipalities or counties that, those municipalities or counties agree, is a single
12destination as perceived by the traveling public.
AB404, s. 4 13Section 4. 66.0615 (1m) (a) of the statutes is amended to read:
AB404,3,15
166.0615 (1m) (a) The governing body of a municipality or county may each
2enact an ordinance, and a district, under par. (e), may adopt a resolution, imposing
3a tax on the privilege of furnishing, at retail, except sales for resale, rooms or lodging
4to transients by hotelkeepers, motel operators and other persons furnishing
5accommodations that are available to the public, irrespective of whether
6membership is required for use of the accommodations. A tax imposed under this
7paragraph is not subject to the selective sales tax imposed by s. 77.52 (2) (a) 1. and
8may not be imposed on sales to the federal government and persons listed under s.
977.54 (9a). A tax imposed under this paragraph by a municipality or county shall be
10paid to the municipality or county and may be forwarded to a commission if one is
11created under par. (c), as provided in par. (d). Except as provided in par. (am), a tax
12imposed under this paragraph by a municipality or county may not exceed 8%.
13Except as provided in par. (am), if a tax greater than 8% under this paragraph is in
14effect on May 13, 1994, the municipality imposing the tax shall reduce the tax to 8%,
15effective on June 1, 1994.
AB404, s. 5 16Section 5. 66.0615 (1m) (b) of the statutes is amended to read:
AB404,3,2017 66.0615 (1m) (b) 1. If a single municipality or county imposes a room tax under
18par. (a), the municipality or county may create a commission under par. (c). The
19commission shall contract with another organization to perform the functions of a
20tourism entity if no tourism entity exists in that municipality or county.
AB404,4,421 2. If any combination of 2 or more municipalities or counties in a zone impose
22a room tax under par. (a), the municipalities or counties shall enter into a contract
23under s. 66.0301 to create a commission under par. (c). If no tourism entity exists in
24any of the municipalities or counties in the zone that have formed a commission, the
25commission shall contract with another organization in the zone to perform the

1functions of the tourism entity. Each municipality and county in a single zone that
2imposes a room tax shall levy the same percentage of tax. If the municipalities and
3counties
are unable to agree on the percentage of tax for the zone, the commission
4shall set the percentage.
AB404,4,65 3. A commission shall monitor the collection of room taxes from each
6municipality and county in a zone that has a room tax.
AB404,4,107 4. A commission shall contract with one tourism entity, or other organization
8if no such entity exists,
from the municipalities and counties in the zone to obtain
9staff, support services, and assistance in developing and implementing programs to
10promote the zone to visitors.
AB404, s. 6 11Section 6. 66.0615 (1m) (c) 1. of the statutes is amended to read:
AB404,4,1512 66.0615 (1m) (c) 1. If a commission is created by a single municipality or county,
13the commission shall consist of 4 to 6 members. One of the commission members
14shall represent the Wisconsin hotel and motel industry. Members shall be appointed
15under subd. 3.
AB404, s. 7 16Section 7. 66.0615 (1m) (c) 2. a. of the statutes is amended to read:
AB404,4,2317 66.0615 (1m) (c) 2. a. If the commission is created by any combination of more
18than one municipality or county in a zone, the commission shall consist of 3 members
19from each municipality and county in which annual tax collections exceed
20$1,000,000, 2 members from each municipality and county in which annual tax
21collections exceed $300,000 but are not more than $1,000,000 and one member from
22each municipality and county in which annual tax collections are $300,000 or less.
23Except as provided in subd. 2. b., members shall be appointed under subd. 3.
AB404, s. 8 24Section 8. 66.0615 (1m) (c) 3. of the statutes is amended to read:
AB404,5,5
166.0615 (1m) (c) 3. Members of the commission shall be appointed by the
2principal elected official in the each municipality or county and shall be confirmed
3by a majority vote of the members of the municipality's or county's governing body
4who are present when the vote is taken. Commissioners shall serve for a one-year
5term, at the pleasure of the appointing official, and may be reappointed.
AB404, s. 9 6Section 9. 66.0615 (1m) (c) 5. of the statutes is amended to read:
AB404,5,87 66.0615 (1m) (c) 5. The commission shall report any delinquencies or
8inaccurate reporting to the each municipality and county that is due the tax.
AB404, s. 10 9Section 10. 66.0615 (1m) (d) 1. of the statutes is amended to read:
AB404,5,1610 66.0615 (1m) (d) 1. A municipality or county that first imposes a room tax
11under par. (a) after May 13, 1994, shall spend at least 70% of the amount collected
12on tourism promotion and development. Any amount of room tax collected that must
13be spent on tourism promotion and development shall either be spent directly by the
14municipality or county on tourism promotion and development or shall be forwarded
15to the commission for its municipality or county, or zone if the municipality or county
16has created a commission.
AB404, s. 11 17Section 11. 66.0615 (1m) (d) 3. of the statutes is amended to read:
AB404,5,2118 66.0615 (1m) (d) 3. A commission shall use the room tax revenue that it
19receives from a each municipality and county to promote and develop tourism,
20including the support of a convention center, in the zone or in the municipality and
21county
.
AB404, s. 12 22Section 12. 66.0615 (1m) (d) 4. of the statutes is amended to read:
AB404,5,2523 66.0615 (1m) (d) 4. The commission shall report annually to each municipality
24and county from which it receives room tax revenue the purposes for which the
25revenues were spent.
AB404, s. 13
1Section 13. 66.0615 (2) (intro.) of the statutes is amended to read:
AB404,6,52 66.0615 (2) (intro.) As a means of enforcing the collection of any room tax
3imposed by a municipality, a county, or a district under sub. (1m), the municipality,
4county,
or district may exchange audit and other information with the department
5of revenue and may do any of the following:
AB404, s. 14 6Section 14. 66.0615 (2) (a) of the statutes is amended to read:
AB404,6,117 66.0615 (2) (a) If a municipality, county, or district has probable cause to believe
8that the correct amount of room tax has not been assessed or that the tax return is
9not correct, inspect and audit the financial records of any person subject to sub. (1m)
10pertaining to the furnishing of accommodations to determine whether the correct
11amount of room tax is assessed and whether any room tax return is correct.
AB404, s. 15 12Section 15. 66.0615 (2) (c) of the statutes is amended to read:
AB404,6,1613 66.0615 (2) (c) Determine the tax under sub. (1m) according to its best
14judgment if a person required to make a return fails, neglects or refuses to do so for
15the amount, in the manner and form and within the time prescribed by the
16municipality, county, or district.
AB404, s. 16 17Section 16. 66.0615 (2) (d) of the statutes is amended to read:
AB404,6,2318 66.0615 (2) (d) Require each person who is subject to par. (c) to pay an amount
19of taxes that the municipality, county, or district determines to be due under par. (c)
20plus interest at the rate of 1% per month on the unpaid balance. No refund or
21modification of the payment determined may be granted until the person files a
22correct room tax return and permits the municipality, county, or district to inspect
23and audit his or her financial records under par. (a).
AB404, s. 17 24Section 17. 66.0615 (3) of the statutes is amended to read:
AB404,7,9
166.0615 (3) The Each municipality and county shall provide by ordinance and
2the district shall provide by resolution for the confidentiality of information obtained
3under sub. (2) but shall provide exceptions for persons using the information in the
4discharge of duties imposed by law or of the duties of their office or by order of a court.
5The municipality, county, or district may provide for the publishing of statistics
6classified so as not to disclose the identity of particular returns. The municipality,
7county,
or district shall provide that persons violating ordinances or resolutions
8enacted under this subsection may be required to forfeit not less than $100 nor more
9than $500.
AB404,7,1010 (End)
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