LRB-1551/1
MES:jld:pg
2007 - 2008 LEGISLATURE
May 31, 2007 - Introduced by Representative Van Akkeren. Referred to Committee
on Tourism, Recreation and State Properties.
AB382,1,3
1An Act to repeal 66.0615 (1m) (d) 2.; and
to amend 66.0615 (1m) (d) 1. of the
2statutes;
relating to: the percentage of room tax revenue that must be spent
3on tourism promotion and development.
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 a tax 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 percent.
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 of 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, and
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 percent of the amount collected on tourism promotion and development;
the expenditure may be spent directly by the municipality or forwarded to the
commission for its municipality or zone. The 30 percent or less of the room tax
revenue that is not spent on tourism promotion and development may be retained
by the municipality and used for any other purpose. If a municipality collected a
room tax on May 13, 1994, it may retain up to the same percentage of the room tax
that it retained on that date, even if that percentage is more than 30 percent.
In general, under this bill, every municipality that collects a room tax must
spend at least 70 percent of the amount collected on tourism promotion and
development.
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:
AB382, s. 1
1Section
1. 66.0615 (1m) (d) 1. of the statutes is amended to read:
AB382,2,82
66.0615
(1m) (d) 1.
A Except for a municipality acting under par. (am) 2., a 3municipality
that first imposes a room tax under par. (a) after May 13, 1994, shall
4spend at least 70% of the amount collected on tourism promotion and development.
5Any amount of room tax collected that must be spent on tourism promotion and
6development shall either be spent directly by the municipality on tourism promotion
7and development or shall be forwarded to the commission for its municipality or zone
8if the municipality has created a commission.
AB382, s. 2
9Section
2. 66.0615 (1m) (d) 2. of the statutes is repealed.
AB382,2,1211
(1) This act first applies to room tax revenue that is collected on the first day
12of the 3rd month beginning after the effective date of this subsection.
