Room Tax Information

In 1994, pursuant to Wisconsin Statutes Section 66.75, the City imposed a tax on the privilege and service of furnishing, at retail, rooms or lodging to transients by hotel keepers, motel operators and other persons furnishing accommodations that are available to the public, irrespective of whether membership is required for the use of the accommodations. The tax rate is five percent (5%) of the gross receipts from such retail furnishing of rooms or lodgings.

The taxes are due quarterly, thirty days after the end of the quarter.

The City keeps 5% of the collected taxes and the other 95% is disbursed to the Chamber of Commerce for tourism promotion and development (70%) and downtown capital improvements (25%). The Chamber of Commerce places 25% of the funds received in an account for capital improvements to enhance the City. The remainder of the funds are used for the operation of the Chamber and the Tourism, Promotion and Development Committee.

Governor Signs Room Tax Changes into Law - June 2021

Last week, Governor Evers signed into law SB 198 as Act 55, making several substantive and technical changes to the room tax law. Under the Act, Airbnb, Expedia, and other online lodging marketplace providers charged with collecting and remitting room taxes are required to collect the room tax and file it with the municipality, on a form specified by DOR, on a quarterly basis, at a minimum, or more frequently if mutually agreed to by a marketplace provider and a municipality. The form must contain at least the following information:

•        The total sales for properties located in a municipality with a room tax.

•        The total number of nights such properties were rented.

•        The room tax rate.

•        The total tax collected.

The bill further provides that if a marketplace provider does not file the required room tax returns to municipalities in a timely fashion or fails to pay the taxes, a municipality may impose a forfeiture of up to $5,000 annually.

The League supports this Legislati0n and worked with the author, Rep. Kitchens (R-Sturgeon Bay), to make changes relating to the time by which market place providers must remit room taxes to municipalities.

Effective Date: The creation of s. 66.0615 (1r) (c), Stats., requiring DOR to develop a web page containing the following information about room tax collections:

The name and mailing address of each municipality that imposes a room tax under sub. (1m); and

The rate of the room tax imposed by each municipality, took effect on July 1, 2021.

The remaining provisions of the act take effect on October 1, 2021.