LRB-4176/1
MES:jld
2015 - 2016 LEGISLATURE
January 7, 2016 - Introduced by Senators Lazich and Carpenter, cosponsored by
Representatives Sanfelippo, Kuglitsch, Allen, Born, Doyle, Hutton,
Kleefisch, Kooyenga, Kremer, Murphy and Spiros. Referred to Committee
on Revenue, Financial Institutions, and Rural Issues.
SB516,1,3 1An Act to amend 66.0615 (1) (fm) (intro.) and 66.0615 (1m) (d) 2.; and to create
266.0615 (1) (ap) and 66.0615 (4) (a) 4. of the statutes; relating to: changing the
3permitted uses of room tax revenues.
Analysis by the Legislative Reference Bureau
This bill changes the definition of "tourism promotion and tourism
development" under the room tax to include within that definition economic
development. The effect of this change is to authorize a municipality that imposes
a room tax to spend any amount that must be spent on tourism promotion and
development to be spent by the municipality on economic development. Amounts not
spent by the municipality on economic development are forwarded to a commission
or tourism entity to be spent on other aspects of tourism promotion and development.
Generally under current law, a municipality may retain a certain percentage
of room tax revenues to be spent by the municipality for any public purpose, and the
remainder of the revenue must be forwarded to a tourism commission, if the
municipality has created one, or to a tourism entity, to be spent on tourism promotion
and development. Current law defines "tourism promotion and tourism
development" as expenditures by a commission or tourism entity on items including
tourism marketing projects, tourist information services, and tangible municipal
development that are significantly used by transient tourists and are likely to
generate paid overnight stays at hotels and motels.
Generally, a municipality may retain approximately 30 percent of the room tax
and must forward approximately 70 percent to a commission or tourism entity,

although that ratio will begin to change somewhat beginning in 2017 such that an
increasing percentage of room tax revenue must be spent on tourism promotion and
development.
Under this bill, out of the approximately 70 percent that must be spent on
tourism promotion and development, a municipality may spend any amount of that
revenue on economic development and amounts not spent for that purpose must be
forwarded to a commission or tourism entity. The bill defines "economic
development" as development designed to promote job growth or retention, expand
the property tax base, or improve a municipality's overall economic vitality.
Beginning in 2017, a municipality must certify each year to the Department of
Revenue the amount of room tax revenues it spends on economic development.
For further information see the 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:
SB516,1 1Section 1. 66.0615 (1) (ap) of the statutes is created to read:
SB516,2,42 66.0615 (1) (ap) "Economic development" means development that is designed
3to promote job growth or retention, expand the property tax base, or improve the
4overall economic vitality of a municipality.
SB516,2 5Section 2. 66.0615 (1) (fm) (intro.) of the statutes, as affected by 2015
6Wisconsin Act 55
, is amended to read:
SB516,2,137 66.0615 (1) (fm) (intro.) "Tourism promotion and tourism development" means
8economic development and any of the following that are significantly used by
9transient tourists and reasonably likely to generate paid overnight stays at more
10than one establishment on which a tax under sub. (1m) (a) may be imposed, that are
11owned by different persons and located within a municipality in which a tax under
12this section is in effect; or, if the municipality has only one such establishment,
13reasonably likely to generate paid overnight stays in that establishment:
SB516,3 14Section 3. 66.0615 (1m) (d) 2. of the statutes, as affected by 2015 Wisconsin
15Act 55
, is amended to read:
SB516,3,14
166.0615 (1m) (d) 2. Subject to par. (dm), if a municipality collects a room tax
2on May 13, 1994, it may retain not more than the same percentage of the room tax
3that it retains on May 13, 1994. If a municipality that collects a room tax on May 1,
41994, increases its room tax after May 1, 1994, the municipality may retain not more
5than the same percentage of the room tax that it retains on May 1, 1994, except that
6if the municipality is not exempt under par. (am) from the maximum tax that may
7be imposed under par. (a), the municipality shall spend at least 70% of the increased
8amount of room tax that it begins collecting after May 1, 1994, on tourism promotion
9and development. Any amount of room tax collected that must be spent on tourism
10promotion and tourism development shall either be forwarded to the commission for
11its municipality or zone if the municipality has created a commission, or forwarded
12to a tourism entity, or spent by the municipality on economic development. Amounts
13spent by a municipality for economic development may not be considered amounts
14retained by the municipality, as described in this subdivision and in par. (dm)
.
SB516,4 15Section 4. 66.0615 (4) (a) 4. of the statutes is created to read:
SB516,3,1716 66.0615 (4) (a) 4. A detailed accounting of the amounts of such revenue that
17were spent by the municipality for economic development.
SB516,3,1818 (End)
Loading...
Loading...