2019 - 2020 LEGISLATURE
September 5, 2019 - Introduced by Senator Smith, cosponsored by Representative
Petryk. Referred to Committee on Agriculture, Revenue and Financial
1An Act to amend
66.1113 (2) (a) and 66.1113 (2) (b); and to create
66.1113 (2) 2
(k) and 66.1113 (2) (L) of the statutes; relating to: authorizing the city of
3Prescott and the village of Pepin to become premier resort areas.
Analysis by the Legislative Reference Bureau
This bill allows the city of Prescott and the village of Pepin to become premier
resort areas notwithstanding the fact that neither municipality meets the generally
applicable requirement that at least 40 percent of the equalized assessed value of the
taxable property within a political subdivision be used by tourism-related retailers
(the 40 percent requirement). “Tourism-related retailers" is defined to be certain
retailers who are classified in the Standard Industrial Classification Manual that
is published by the U.S. Office of Management and Budget. The statutory definition
includes 21 retailers who are so classified, including variety stores, dairy product
stores, gasoline service stations, eating places, drinking places, and hotels and
Currently, a number of cities and villages are authorized to enact an ordinance
or adopt a resolution to become a premier resort area notwithstanding the fact that
none of these cities or villages meet the 40 percent requirement. As is the case with
the villages of Sister Bay, Ephraim, and Stockholm, and the city of Rhinelander, the
premier resort area tax may not take effect in Prescott or Pepin unless it is approved
in a referendum of the electors.
A premier resort area may impose a tax at a rate of 0.5 percent of the gross
receipts from the sale, lease, or rental of goods or services that are subject to the
general sales and use tax and are sold by tourism-related retailers. The proceeds
of the tax may be used only to pay for infrastructure expenses within the jurisdiction
of the premier resort area. The definition of “infrastructure expenses" includes the
costs of purchasing, constructing, or improving parking lots; transportation
facilities, including roads and bridges; sewer and water facilities; recreational
facilities; exposition center facilities; fire fighting equipment; and police vehicles.
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:
66.1113 (2) (a) of the statutes is amended to read:
(a) The governing body of a political subdivision, by a two-thirds 3
vote of the members of the governing body who are present when the vote is taken, 4
may enact an ordinance or adopt a resolution declaring itself to be a premier resort 5
area if, except as provided in pars. (e), (f), (g), (h), (i), and
(j), (k), and (L),
at least 40 6
percent of the equalized assessed value of the taxable property within such political 7
subdivision is used by tourism-related retailers.
66.1113 (2) (b) of the statutes is amended to read:
(b) Subject to pars. (g), (h), (i),
(j), (k), and (L),
a political 10
subdivision that is a premier resort area may impose the tax under s. 77.994.
66.1113 (2) (k) of the statutes is created to read:
(k) The city of Prescott may enact an ordinance or adopt a resolution 13
declaring itself to be a premier resort area under par. (a) even if less than 40 percent 14
of the equalized assessed value of the taxable property within Prescott is used by 15
tourism-related retailers. The city may not impose the tax authorized under par. (b) 16
unless the common council adopts a resolution proclaiming its intent to impose the 17
tax and the resolution is approved by a majority of the electors in the city voting on 18
the resolution at a referendum, to be held at the first spring primary or election or
partisan primary or general election following by at least 70 days the date of adoption 2
of the resolution.
66.1113 (2) (L) of the statutes is created to read:
(L) The village of Pepin may enact an ordinance or adopt a 5
resolution declaring itself to be a premier resort area under par. (a) even if less than 6
40 percent of the equalized assessed value of the taxable property within Pepin is 7
used by tourism-related retailers. The village may not impose the tax authorized 8
under par. (b) unless the village board adopts a resolution proclaiming its intent to 9
impose the tax and the resolution is approved by a majority of the electors in the 10
village voting on the resolution at a referendum, to be held at the first spring primary 11
or election or partisan primary or general election following by at least 70 days the 12
date of adoption of the resolution.
(1) This act takes effect on the first day of the calendar quarter beginning at 15
least 120 days after publication.