Chapter 125

125.51(3)(e)6. 6. Notwithstanding subd. 2., each municipal governing body that has designated a premier economic development district under sub. (4) (u) 2. shall establish the fee, in an amount not less than $30,000, for initial issuance of a reserve “Class B” license under sub. (4) (u) 3. A municipality may not rebate or refund to a “Class B” licensee or a person affiliated with the “Class B” licensee or with the license application process, including through any grant or tax credit program, the fee paid by the licensee under this subdivision for initial issuance of a reserve “Class B” license under sub. (4) (u) 3. The annual fee for renewal of a reserve “Class B” license issued under sub. (4) (u) 3. is the fee established under subd. 1.

125.51(3)(f) (f) A “Class B” license may be issued only to a holder of a retail Class “B” license to sell fermented malt beverages unless the “Class B” license is a temporary “Class B” license under sub. (10).

125.51(3m) (3m) Retail “Class C” license.

125.51(3m)(b) (b) A “Class C” license authorizes the retail sale of wine by the glass or in an opened original container for consumption on the premises where sold.

125.51(3m)(c) (c) Except as provided under s. 125.69, a “Class C” license may be issued to a person qualified under s. 125.04 (5), except a person acting as an agent for or in the employ of another.

125.51(3m)(d) (d) A “Class C” license shall particularly describe the premises for which it is issued.

125.51(3m)(e) (e) The annual fee for a “Class C” license shall be determined by the municipal governing body issuing the license. The fee shall not exceed $100 and shall be the same for all “Class C” licenses.

125.51(3r) (3r) Sales of wine by the bottle in restaurants.

125.51(3r)(a) (a) Notwithstanding subs. (3) (a) and (b) and (3m) (b), a “Class B” license or “Class C” license authorizes the retail sale of wine in an opened original bottle, in a quantity not to exceed one bottle, for consumption both on and off the premises where sold if all of the following apply:

125.51(3r)(a)1. 1. The licensed premises is a restaurant also operated under a “Class B” or “Class C” license and the purchaser of the wine orders food to be consumed on the licensed premises.

125.51(3r)(a)2. 2. The licensee provides a dated receipt that identifies the purchase of the food and the bottle of wine.

125.51(3r)(a)3. 3. Prior to the opened, partially consumed bottle of wine being taken off the licensed premises, the licensee securely reinserts the cork into the bottle to the point where the top of the cork is even with the top of the bottle, or securely reattaches the original cap to the bottle, and the cork is reinserted or the cap is reattached at a time other than during the time period specified in s. 125.68 (4) (c) 3.

125.51(3r)(b) (b) Nothing in this subsection restricts a licensee’s authorization for retail sales of wine under subs. (3) (a) and (b) and (3m) (b).

125.51(4) (4) Quotas on “Class B” licenses.

125.51(4)(a) (a) In this subsection:

125.51(4)(a)1. 1. “License” means a retail “Class B” license issued under sub. (3).

125.51(4)(a)2. 2. “Population” means the number of inhabitants in the previous year determined by the department of administration under s. 16.96 (2) for purposes of revenue sharing distribution.

125.51(4)(a)3. 3. “Quota” means the number of licenses which a municipality may grant or issue.

125.51(4)(a)4. 4. “Reserve “Class B” license” means a license that is not granted or issued by a municipality on December 1, 1997, and that is counted under par. (br).

125.51(4)(am) (am) No municipality may issue a license that would cause the municipality to exceed its quota.

125.51(4)(b) (b) Except as provided in pars. (c) and (d), the quota of each municipality is the sum of the following:

125.51(4)(b)1g. 1g. The number of licenses granted or issued in good faith by the municipality and in force on December 1, 1997.

125.51(4)(b)1m. 1m. The number of the municipality’s reserve “Class B” licenses determined under par. (bm) 3.

125.51(4)(bm) (bm) The clerk of each municipality shall record the municipality’s population, as defined in par. (a) 2., and the number of licenses:

125.51(4)(bm)1. 1. Authorized to be issued by the municipality on December 1, 1997, under s. 125.51 (4), 1995 stats.;

125.51(4)(bm)2. 2. Described in par. (b) 1g.; and

125.51(4)(bm)3. 3. That are reserve “Class B” licenses.

125.51(4)(br) (br)

125.51(4)(br)1. 1. Except as provided in subd. 2., the number of reserve “Class B” licenses authorized to be issued by a municipality shall be determined as follows:

125.51(4)(br)1.a. a. Subtract 3 from the number recorded under par. (bm) 1.

125.51(4)(br)1.b. b. Subtract the number recorded under par. (bm) 2. from the result under subd. 1. a.

125.51(4)(br)1.c. c. Divide the result under subd. 1. b. by 2, except that if the result is not a whole number round the quotient down to the nearest whole number.

125.51(4)(br)1.d. d. Add 3 to the result under subd. 1. c.

125.51(4)(br)1.e. e. Add one license per each increase of 500 population to the population recorded under par. (bm).

125.51(4)(br)1.f. f. Add one license if the municipality had issued a license under s. 125.51 (4) (br) 1. e., 1999 stats., based on a fraction of 500 population, but a municipality’s quota is only increased under this subd. 1. f. as long as the total number of licenses issued by the municipality equals the maximum number of licenses authorized, including under this subd. 1. f.

125.51(4)(br)1.g. g. Add one license for each license transferred to the municipality under par. (e).

125.51(4)(br)1.h. h. Subtract one license for each license transferred from the municipality under par. (e).

125.51(4)(br)2. 2. Notwithstanding subd. 1., if the difference between the number of licenses determined under par. (b) 1g. and under par. (bm) 1. is 3 or fewer, the number of reserve “Class B” licenses authorized to be issued by that municipality is the difference between the number of licenses determined under par. (b) 1g. and under par. (bm) 1., plus one per each increase of 500 population to the population recorded under par. (bm), plus one for each license transferred to the municipality under par. (e), minus one for each license transferred from the municipality under par. (e), plus one if the municipality had issued a license under s. 125.51 (4) (br) 2., 1999 stats., based on a fraction of 500 population but only as long as the total number of licenses issued by the municipality equals the maximum number of licenses authorized.

125.51(4)(c) (c) If territory containing premises covered by a license or reserve “Class B” license is annexed to a municipality and if the municipality’s quota would not otherwise allow a license or reserve “Class B” license for the premises, the quota is increased to include the license or reserve “Class B” license of each premises in the annexed territory.

125.51(4)(d) (d) Detachment of territory decreases the quota of the remainder of the municipality by the number of licenses or reserve “Class B” licenses issued for premises in the detached territory, except that detachment does not decrease the quota of the remainder to less than one license per 500 persons or less than one license.

125.51(4)(e) (e)

125.51(4)(e)1. 1. A municipality may make a request to another municipality located in whole or in part in the same county as the requesting municipality that the other municipality transfer a reserve “Class B” license to the requesting municipality. If the request is granted, the reserve “Class B” license shall be transferred.

125.51(4)(e)2. 2. A municipality may transfer or receive more than one reserve “Class B” license under this paragraph as long as each transfer meets the requirements of this paragraph, but a municipality may not transfer more than 3 reserve “Class B” licenses under this paragraph.

125.51(4)(e)3. 3. After transfer of a reserve “Class B” license under this paragraph, the municipality receiving the reserve “Class B” license may issue and renew the reserve “Class B” license in the same manner as other reserve “Class B” licenses that have not been so transferred, except that the fee under sub. (3) (e) 4., not sub. (3) (e) 2., applies upon issuance of the reserve “Class B” license by the receiving municipality after the transfer. Upon receipt of the issuance fee from the licensee, the receiving municipality shall remit this issuance fee to the municipality that transferred the license.

125.51(4)(e)4. 4. Notwithstanding subds. 1. to 3., if a municipality has not issued any licenses, the municipality may not transfer any licenses under this paragraph.

125.51(4)(u) (u)

125.51(4)(u)1. 1. In this paragraph:

125.51(4)(u)1.a. a. “Economic development project” means a project or projects within a premier economic development district that, alone or together, have an estimated comprehensive new construction assessed valuation increase of at least $20,000,000, as established and certified by an independent 3rd-party appraiser or market research firm that provides a written report regarding the estimated value to be created by the project or projects.

125.51(4)(u)1.b. b. “Premier economic development district” means a geographic area designated under subd. 2.

125.51(4)(u)2. 2. A municipality may, by ordinance enacted by at least a two-thirds vote of the municipality’s governing body, designate a geographic area within the municipality as a premier economic development district if all of the following apply:

125.51(4)(u)2.a. a. The geographic area does not exceed 40 acres and the boundaries of the geographic area are precisely identified in the ordinance.

125.51(4)(u)2.b. b. No part of the geographic area is physically separated from the rest of the geographic area so that, except for public streets, similar community infrastructure, and rivers and other waterways, each portion of the geographic area is contiguous with some other portion of the geographic area.

125.51(4)(u)2.c. c. The geographic area does not include any land that is zoned exclusively for industrial use or zoned exclusively for single-family or 2-family residences.

125.51(4)(u)3. 3. Notwithstanding pars. (am) to (d) and s. 125.185 (5), a municipality that has designated a premier economic development district may issue up to 2 “Class B” licenses in connection with an economic development project within the premier economic development district, in addition to the number of licenses determined for the municipality’s quota under pars. (b) to (d) and in addition to any license under par. (v) or (w).

125.51(4)(u)4. 4. A “Class B” license issued under subd. 3. may not be transferred under s. 125.04 (12) (b) 4. If a “Class B” license issued under subd. 3. is surrendered to the issuing municipality, revoked, or not renewed, the municipality may reissue the license only for premises located within the premier economic development district.

125.51(4)(u)5. 5. A municipality may not designate more than one premier economic development district under this paragraph.

125.51(4)(u)6. 6. Not more than 2 “Class B” licenses may be issued under this paragraph for premises within a premier economic development district, regardless of the number of economic development projects within the premier economic development district.

125.51(4)(v) (v) Notwithstanding par. (am), if a municipality has granted or issued a number of licenses equal to or exceeding its quota, the municipal governing body may issue a license for any of the following:

125.51(4)(v)1. 1. A full-service restaurant that has an interior, permanent seating capacity of 300 or more persons.

125.51(4)(v)2. 2. A hotel that has 50 or more rooms of sleeping accommodations and that has either an attached restaurant with a seating capacity of 150 or more persons or a banquet room in which banquets attended by 400 or more persons may be held.

125.51(4)(v)3. 3. An opera house or theater for the performing arts operated by a nonprofit organization, as defined in s. 134.695 (1) (am). Notwithstanding sub. (3) (a) and (b), a “Class B” license issued under this subdivision authorizes the retail sale of intoxicating liquor only for consumption on the premises where sold and only in connection with ticketed performances.

125.51(4)(v)4. 4. A full-service restaurant that has a seating capacity of 75 to 100 persons on November 26, 2009; is located in a commercial building; prepares, serves, and sells food to the public; has a separate dining area with permanent fixtures where table service is provided a minimum of 4 nights per week for a minimum of 6 months per year; generates more than 50 percent of total annual sales revenue from food sales; and is located on a golf course in a municipality, in Bayfield County, having a population of at least 400 but not more than 500. For purposes of this subdivision, “golf course” does not include a miniature golf course. No “Class B” license may be issued under this subdivision after March 1, 2010. If a “Class B” license issued under this subdivision is surrendered to the issuing municipality, not renewed, or revoked, the municipality may not reissue the license.

125.51(4)(v)5. 5. An event venue certified by the division under s. 125.24 (5) (b). Except as provided in this subdivision, a license may not be issued under this subdivision unless the license application is received by the municipality no later than August 1, 2026. Except as provided in this subdivision, if a “Class B” license issued under this subdivision is surrendered to the issuing municipality, not renewed, or revoked, the municipality may not reissue the license. The municipality may reissue the license if the licensee sells or transfers ownership of the licensed premises or a business operated on the licensed premises and the license is surrendered or not renewed in connection with the sale or transfer of the property or business, the licensee continued to operate the licensed premises as a qualifying event venue, as defined in s. 125.24 (5) (a), from the time of license issuance until the time the license is surrendered or not renewed, the license is reissued for the same location, and the applicant for reissuance of the license satisfies the requirements under this chapter to hold the license and certifies to the municipality that the applicant will continue to operate the licensed premises as a qualifying event venue, as defined in s. 125.24 (5) (a).

Effective date note NOTE: Subd. 5. is created eff. 1-1-26 by 2023 Wis. Act 73.

125.51(4)(w) (w)

125.51(4)(w)1. 1. Notwithstanding pars. (am) to (d) and s. 125.185 (5), the village board of any village in the northern geographical half of Ozaukee County having a population of more than 4,000 may issue, to any applicant designated by the village board, one “Class B” license in addition to the number of licenses determined for the village’s quota under pars. (b) to (d). No “Class B” license may be issued under this subdivision after August 1, 2008. If a “Class B” license issued under this subdivision is surrendered to the issuing village, not renewed, or revoked, the village may not reissue the license, but a “Class B” license issued under this subdivision may be transferred in the same manner as other licenses as provided under s. 125.04 (12) (b) 4.

125.51(4)(w)2. 2. Notwithstanding pars. (am) to (d) and s. 125.185 (5), a city that is immediately adjacent to the southern border of the city of Milwaukee and that has an eastern boundary of Lake Michigan may issue 3 “Class B” licenses in addition to the number of licenses determined for the city’s quota under pars. (b) to (d).

125.51(4)(w)3. 3. Notwithstanding pars. (am) to (d) and s. 125.185 (5), a 4th class city located in Dane County having a population as shown in the 2000 federal decennial census of at least 8,000 but not more than 9,000 may issue one “Class B” license in addition to the number of licenses determined for the city’s quota under pars. (b) to (d).

125.51(4)(w)4. 4. Notwithstanding pars. (am) to (d) and s. 125.185 (5), a 3rd class city located in Dane County having a population as shown in the 2000 federal decennial census of at least 15,000 but not more than 16,000 may issue 2 “Class B” licenses in addition to the number of licenses determined for the city’s quota under pars. (b) to (d).

125.51(4)(w)5. 5. Notwithstanding pars. (am) to (d) and s. 125.185 (5), the town of Wyoming in Iowa County may issue one “Class B” license in addition to the number of licenses determined for the town’s quota under pars. (b) to (d). No “Class B” license may be issued under this subdivision after February 1, 2016. If the “Class B” license issued under this subdivision is surrendered to the issuing town, not renewed, or revoked, the town may not reissue the license.

125.51(4)(x) (x)

125.51(4)(x)1. 1. In this paragraph:

125.51(4)(x)1.a. a. “Area base value” means the aggregate assessed value of all taxable property located within the geographic bounds of a capital improvement area on January 1 of the year that is 5 years prior to the year in which such capital improvement area is enumerated under subd. 2.

125.51(4)(x)1.b. b. “Capital improvement area” means a geographic area that is enumerated under subd. 2. as having an improvement increment exceeding $50,000,000 in the year in which the area is enumerated and as being located within a municipality with insufficient reserve “Class B” licenses to issue a “Class B” license for each business or proposed business that would reasonably require one.

125.51(4)(x)1.c. c. “Good faith,” with respect to an applicant’s attempt to purchase a “Class B” licensed business, includes an applicant making an offer to purchase the business for an amount exceeding $25,000 in total value, without additional significant conditions placed on the purchase by either party, after having given notice to all current “Class B” license holders within the municipality where the business is located, by U.S. mail addressed to either the licensee’s last-known address or to the licensed premises, of the applicant’s interest in purchasing a licensed business, except that an offer in an amount of $25,000 or less may also be considered to be in a good faith for purposes of this subd. 1. c. depending on the fair market value of the business, the availability of other licensed businesses for purchase, and any conditions attached to the sale.

125.51(4)(x)1.d. d. “Improvement increment” means the aggregate assessed value of all taxable property in a capital improvement area as of January 1 of any year minus the area base value.

125.51(4)(x)1.e. e. “Qualified applicant” means an applicant that complies with all requirements under s. 125.04 (5) and (6) and any applicable ordinance, that certifies by affidavit that the applicant has made a good faith attempt to purchase the business of a person holding a “Class B” license within the municipality and have that license transferred to the applicant under s. 125.04 (12) (b) 4., and for whom the issuing municipality has determined that these requirements have been met.

125.51(4)(x)2. 2. The legislature hereby enumerates, as a capital improvement area, the geographic area composed of all land within the Tax Incremental District Number 3 within the city of Oconomowoc in Waukesha County that lies south of Valley Road and east of STH 67 or that lies south of I 94 and west of STH 67.

125.51(4)(x)3. 3. Notwithstanding pars. (am) to (d) and s. 125.185 (5), upon application by a qualified applicant, the governing body of any municipality containing a capital improvement area enumerated under subd. 2. shall issue to the qualified applicant one “Class B” license in addition to the number of licenses determined for the municipality’s quota under pars. (b) to (d) and in addition to any license under par. (v).

125.51(4)(x)4. 4. Notwithstanding pars. (am) to (d) and s. 125.185 (5), after a qualified applicant has filed an application under subd. 3. and upon application by an initial qualified applicant under this subdivision, the governing body of any municipality containing a capital improvement area enumerated under subd. 2. shall determine the improvement increment within the capital improvement area for the calendar year in which the application under this subdivision is filed. If the improvement increment is at least $10,000,000 above $50,000,000, the governing body of the municipality shall issue to the initial qualified applicant a “Class B” license. For each $10,000,000 of improvement increment above $50,000,000, the governing body of the municipality is authorized to issue under this subdivision one “Class B” license and, upon each application by a qualified applicant subsequent to that of the initial qualified applicant, the governing body of the municipality shall issue a “Class B” license to the qualified applicant until all licenses authorized under this subdivision have been issued. If the governing body of any municipality receives an application by a qualified applicant in a calendar year subsequent to the calendar year in which it received the application of the initial qualified applicant, the governing body of the municipality shall redetermine the improvement increment for that year for the purpose of determining the number of “Class B” licenses authorized under this subdivision. The “Class B” licenses that a municipality is authorized to issue under this subdivision are in addition to the number of licenses determined for the municipality’s quota under pars. (b) to (d), any license under par. (v), and the license under subd. 3.

125.51(4)(x)5. 5. Notwithstanding subds. 3. and 4., not more than 8 “Class B” licenses may be issued under this paragraph for premises within the same capital improvement area.

125.51(4)(x)6. 6. Notwithstanding subd. 7., any “Class B” license issued under this paragraph may be transferred as provided under s. 125.04 (12) (b) 4. Notwithstanding subds. 5. and 7., if a “Class B” license issued under this paragraph is surrendered to the issuing municipality, revoked, or not renewed, the municipality may reissue the license to a qualified applicant for a premises located within the same capital improvement area for which the license was originally issued.

125.51(4)(x)7. 7. No “Class B” license may be issued under this paragraph after July 1, 2017.

125.51(5) (5) Retail “Class B” permits.

125.51(5)(a) (a) Sports clubs.

125.51(5)(a)1. 1. The division shall issue “Class B” permits to clubs that are operated solely for the playing of golf or tennis and are commonly known as country clubs and to clubs which are operated solely for curling, ski jumping, or yachting. A “Class B” permit may be issued only to a club that holds a valid certificate issued under s. 73.03 (50), that is not open to the general public, and that is located in a municipality that does not issue “Class B” licenses or to a club located in a municipality that issues “Class B” licenses, if the club holds a valid certificate issued under s. 73.03 (50), is not open to the general public, was not issued a license under s. 176.05 (4a), 1979 stats., and does not currently hold a “Class B” license. The permits may be issued by the division without regard to any quota under sub. (4). The holder of a “Class B” permit may sell intoxicating liquor for consumption by the glass and not in the original package or container on the premises covered by the permit.

125.51(5)(a)2. 2. Except as provided in this paragraph, all sections of this chapter applying to retail “Class B” licenses apply to “Class B” permits issued under this paragraph.

125.51(5)(a)3. 3. “Class B” permits may be issued only to a club which has occupied the premises upon which it is located for a period of at least 6 months prior to the date of application.

125.51(5)(a)4. 4. The division may annually issue a “Class B” permit to any club that holds a valid certificate issued under s. 73.03 (50), is organized to engage in sports similar to curling, golf, tennis or yachting and that held a license from July 1, 1950, to June 30, 1951, as long as it is continuously operated under substantially the same circumstances under which it operated during the year beginning July 1, 1950, if the club is located in a municipality that does not issue “Class B” licenses.