LRBs0255/1
MES:ahe&amn
2019 - 2020 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 683
February 11, 2020 - Offered by Representative Kitchens.
AB683-ASA1,1,8
1An Act to repeal 66.0615 (1) (bs) and 66.0615 (5);
to renumber and amend
259.25 (3) (e);
to amend 66.0615 (1) (de), 66.0615 (1) (dk), 66.0615 (1m) (a),
366.0615 (1m) (g), 66.0615 (2) (intro.), 66.0615 (2) (a), 66.0615 (2) (b), 66.0615 (3),
466.0615 (4) (a) (intro.) and 66.1014 (2) (d) 1.; and
to create 59.25 (3) (e) 1., 59.25
5(3) (e) 2., 66.0615 (1) (bt), 66.0615 (1) (bu), 66.0615 (1r), 66.0615 (2) (f), 66.0615
6(2m), 66.0615 (4) (a) 4., 66.0615 (4) (d) and 66.1014 (1) (c) of the statutes;
7relating to: expanding applicability of the room tax, making substantive and
8technical changes to the local room tax, and providing a penalty.
Analysis by the Legislative Reference Bureau
This bill expands the applicability of the room tax, makes a number of
substantive and technical changes to the local room tax in the areas of collections,
audits, and the exchange of information between local governments and the
Department of Revenue, establishes a common tax base between the sales tax and
the room tax, and authorizes a municipality (city, village, or town) to impose a
forfeiture of up to $200 per day on a marketplace provider (a person who facilitates
a retail sale by a seller by listing or advertising, to the extent that the marketplace
provider facilitates the sale or furnishing of rooms, lodging, or other accommodations
to transients) that does not timely file a required room tax return to the municipality
or pay the required tax. The maximum forfeiture that may be imposed for any year
is $20,000, and a forfeiture that is imposed may be appealed to the municipality
which imposed it. The municipality may waive the forfeiture.
Currently, the room tax may be imposed by a municipality or a local exposition
district on the privilege of furnishing rooms or lodging to transients by hotelkeepers,
motel operators, lodging marketplaces, and other persons who furnish such
accommodations. Under the bill, the room tax may be imposed by a municipality or
district on the sales price from selling or furnishing rooms or lodging to transients
by hotelkeepers, motel operators, and others.
2019 Wisconsin Act 10 in effect
requires lodging marketplaces to collect and remit sales taxes from third parties.
Under this bill, for transactions that occur through a marketplace provider, the
marketplace provider generally collects any room tax due from a marketplace seller
(a seller who sells products through a physical or electronic marketplace operated by
a marketplace provider), and forwards it to the municipality on a quarterly basis,
along with a form prepared by DOR. Annually, beginning before January 1, 2021,
DOR is required to post on its website the name of each municipality that imposes
a room tax, and the rate of each room tax.
Under current law, to enforce the collection of a room tax imposed by a
municipality or district, if such entities have probable cause to believe that the
correct amount of room tax has not been assessed or that a room tax return is
incorrect, they may inspect and audit the financial records of any person subject to
the room tax. Under the bill, to perform such room tax enforcement, a municipality
or district may inspect and audit tax-related records of a person subject to the room
tax.
The technical changes made by the bill include the following:
1. Requires counties to provide DOR with the complete county tax roll.
2. Applies to the room tax a number of definitions that currently apply to the
general sales and use tax.
3. Except as provided above for marketplace providers, clarifies that persons
who are subject to the room tax must file a room tax return in the manner and form,
and within the time, prescribed by a municipality. The municipality may require
such persons to provide certain specific information with the return.
4. Authorizes a municipality or district performing an audit related to the room
tax to conduct joint audits with other such entities and to exchange audit information
with DOR and any municipality that took part in the joint audit.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB683-ASA1,1
1Section
1. 59.25 (3) (e) of the statutes is renumbered 59.25 (3) (e) (intro.) and
2amended to read:
AB683-ASA1,3,3
159.25
(3) (e) (intro.) Annually by March 15, furnish to the department of
2revenue
the completed tax roll settlement sheets prescribed under s. 70.09 (3). all of
3the following:
AB683-ASA1,2
4Section
2. 59.25 (3) (e) 1. of the statutes is created to read:
AB683-ASA1,3,65
59.25
(3) (e) 1. The completed tax roll settlement sheets prescribed under s.
670.09 (3).
AB683-ASA1,3
7Section
3. 59.25 (3) (e) 2. of the statutes is created to read:
AB683-ASA1,3,98
59.25
(3) (e) 2. The complete county tax roll, as that term is used in s. 70.65,
9in a form and manner prescribed by the department.
AB683-ASA1,4
10Section
4. 66.0615 (1) (bs) of the statutes is repealed.
AB683-ASA1,5
11Section
5. 66.0615 (1) (bt) of the statutes is created to read:
AB683-ASA1,3,1412
66.0615
(1) (bt) “Marketplace provider” has the meaning given in s. 77.51 (7i),
13to the extent that the marketplace provider facilitates the sale or furnishing of
14rooms, lodging, or other accommodations to transients under sub. (1m) (a).
AB683-ASA1,6
15Section 6
. 66.0615 (1) (bu) of the statutes is created to read:
AB683-ASA1,3,1616
66.0615
(1) (bu) “Marketplace seller” has the meaning given in s. 77.51 (7j).
AB683-ASA1,7
17Section 7
. 66.0615 (1) (de) of the statutes is amended to read:
AB683-ASA1,3,1918
66.0615
(1) (de) “Occupant” means a person who rents a short-term rental
19through a
lodging marketplace
provider.
AB683-ASA1,8
20Section 8
. 66.0615 (1) (dk) of the statutes is amended to read:
AB683-ASA1,3,2221
66.0615
(1) (dk) “Short-term rental” means a residential dwelling that is
22offered for rent for a fee and for fewer than
29
30 consecutive days.
AB683-ASA1,9
23Section
9. 66.0615 (1m) (a) of the statutes is amended to read:
AB683-ASA1,4,1624
66.0615
(1m) (a) The governing body of a municipality may enact an ordinance,
25and a district, under par. (e), may adopt a resolution, imposing a tax on the
privilege
1of sales price from selling or furnishing, at retail, except sales for resale, rooms or
2lodging to transients by hotelkeepers, motel operators,
lodging marketplaces,
3marketplace providers, owners of short-term rentals, and other persons
or retailers
4selling or furnishing accommodations that are available to the public, irrespective
5of whether membership is required for use of the accommodations. A tax imposed
6under this paragraph may be collected from the consumer or user, but may not be
7imposed on sales to the federal government and persons listed under s. 77.54 (9a).
8A tax imposed under this paragraph by a municipality shall be paid to the
9municipality and, with regard to any tax revenue that may not be retained by the
10municipality, shall be forwarded
by the municipality to a tourism entity or a
11commission if one is created under par. (c), as provided in par. (d). Except as provided
12in par. (am), a tax imposed under this paragraph by a municipality may not exceed
138 percent
of the sales price. Except as provided in par. (am), if a tax greater than 8
14percent
of the sales price under this paragraph is in effect on May 13, 1994, the
15municipality imposing the tax shall reduce the tax to 8 percent, effective on
16June 1, 1994.
AB683-ASA1,4,2219
66.0615
(1m) (g) Sections
77.51 (10), (12m), (13), (13g), (14), (14g), (15a), (15b),
20and (17), 77.52
(3), (3m)
and
, (13), (14), (18), and (19), 77.522, 77.523,
77.53 (7), 77.54,
2177.58 (6m), and 77.585, as they apply to the taxes under subch. III of ch. 77, shall
22apply to the tax imposed under par. (a) by a municipality.
AB683-ASA1,11
23Section 11
. 66.0615 (1r) of the statutes is created to read:
AB683-ASA1,5,324
66.0615
(1r) (a) Except as provided in par. (b), persons who are subject to the
25tax imposed by a municipality under sub. (1m) shall file returns in the manner and
1form, and within the time, prescribed by the municipality. The municipality may also
2require such persons to include with the person's return the following information
3about the property subject to the room tax:
AB683-ASA1,5,44
1. The address of each property.
AB683-ASA1,5,55
2. The total sales for each property.
AB683-ASA1,5,66
3. The total tax collected for each property.
AB683-ASA1,5,77
4. The number of nights each short-term rental was rented.
AB683-ASA1,5,168
(b) A marketplace provider shall collect the tax imposed by a municipality
9under sub. (1m) (a) for a marketplace seller, unless the marketplace provider has
10been issued a waiver under s. 77.52 (3m) (b) or (c) and forward it to the municipality,
11on a quarterly basis, along with a form prepared by the department of revenue as
12described under par. (c). The marketplace provider shall notify the marketplace
13seller that the marketplace provider has collected and forwarded the taxes described
14in this paragraph. A municipality may not impose and collect a room tax from the
15marketplace seller if the municipality collects the room tax as described in this
16paragraph.
AB683-ASA1,5,1817
(c) The form prepared by the department of revenue as described under par. (b)
18shall contain at least the following information:
AB683-ASA1,5,1919
1. The address of each property subject to the room tax.
AB683-ASA1,5,2020
2. The total tax collected for each property specified in subd. 1.
AB683-ASA1,5,2321
(d) Before January 1, 2021, and updated annually, the department of revenue
22shall create a website that contains the following information about room tax
23collections:
AB683-ASA1,5,2524
1. The name and mailing address of each municipality that imposes a room tax
25under sub. (1m) (a).
AB683-ASA1,6,1
12. The rate of the room tax imposed by each municipality specified in subd. 1.
AB683-ASA1,12
2Section
12. 66.0615 (2) (intro.) of the statutes is amended to read:
AB683-ASA1,6,63
66.0615
(2) (intro.) As a means of enforcing the collection of any room tax
4imposed by a municipality or a district under sub. (1m), the municipality or district
5may exchange audit and other information with the department of revenue and may
6do any of the following:
AB683-ASA1,13
7Section
13. 66.0615 (2) (a) of the statutes is amended to read:
AB683-ASA1,6,148
66.0615
(2) (a)
If a A municipality or district
that has probable cause to believe
9that the correct amount of room tax has not been assessed or that the tax return is
10not correct,
may inspect and audit the
financial records of any person subject to sub.
11(1m) pertaining to the furnishing
or selling of accommodations to determine
whether 12the correct amount of room tax
is assessed and whether any room tax return is correct 13due. A determination under this subsection shall be provided in writing within 4
14years after the due date of the return, unless no return has been filed.
AB683-ASA1,14
15Section 14
. 66.0615 (2) (b) of the statutes is amended to read:
AB683-ASA1,6,1916
66.0615
(2) (b) Enact a schedule of forfeitures, not to exceed 5 percent of the
17tax under sub. (1m) or par. (c), to be imposed on any person subject to sub. (1m) who
18fails to comply with a request to inspect and audit the person's
financial records
19under par. (a).
AB683-ASA1,15
20Section
15. 66.0615 (2) (f) of the statutes is created to read:
AB683-ASA1,7,321
66.0615
(2) (f) A marketplace provider that is required to collect and remit
22taxes imposed by a municipality under sub. (1m) (a), but fails to file a return as
23required in sub. (1r) or pay the required tax, may be subject to a forfeiture of $200
24for each day a return is not filed or the tax is not paid. The total amount of forfeitures
25that may be imposed by a municipality may not exceed $20,000 for any year in which
1a required return is not filed or required tax is not remitted. A forfeiture imposed
2under this paragraph may be appealed to the municipality, which may waive the
3forfeiture.
AB683-ASA1,16
4Section
16. 66.0615 (2m) of the statutes is created to read:
AB683-ASA1,7,75
66.0615
(2m) (a) To enforce the collection of a room tax imposed by a district
6under sub. (1m), the district may exchange audit and other information relating to
7the room tax with the department of revenue.
AB683-ASA1,7,138
(b) To enforce the collection of a room tax imposed by a municipality under sub.
9(1m), the municipality may jointly inspect and audit the room tax records of a person
10subject to sub. (1m) with other municipalities only for the purpose of conducting a
11joint room tax audit. A municipality may provide audit and other information to the
12department of revenue, and may exchange audit and other room tax related
13information with any municipality that took part in conducting the joint audit.
AB683-ASA1,17
14Section 17
. 66.0615 (3) of the statutes is amended to read:
AB683-ASA1,7,2215
66.0615
(3) The municipality shall provide by ordinance and the district shall
16provide by resolution for the confidentiality of information obtained under
sub. subs.
17(1r) and (2) but shall provide exceptions for persons using the information in the
18discharge of duties imposed by law or of the duties of their office or by order of a court.
19The municipality or district may provide for the publishing of statistics classified so
20as not to disclose the identity of particular returns. The municipality or district shall
21provide that persons violating ordinances or resolutions enacted under this
22subsection may be required to forfeit not less than $100 nor more than $500.
AB683-ASA1,18
23Section 18
. 66.0615 (4) (a) (intro.) of the statutes is amended to read:
AB683-ASA1,8,224
66.0615
(4) (a) (intro.)
Annually Except as provided in par. (d), annually, on or
25before May 1, on a form created and provided by the department of revenue, every
1municipality that imposes a tax under sub. (1m) shall certify and report to the
2department
, beginning in 2017, all of the following:
AB683-ASA1,19
3Section 19
. 66.0615 (4) (a) 4. of the statutes is created to read:
AB683-ASA1,8,64
66.0615
(4) (a) 4. For a municipality subject to sub. (1m) (dm), the amount of
5the room tax retained by the municipality in each of the following fiscal years: 2010,
62011, 2012, 2013, and 2014.
AB683-ASA1,20
7Section 20
. 66.0615 (4) (d) of the statutes is created to read:
AB683-ASA1,8,128
66.0615
(4) (d) Notwithstanding the requirement in par. (a) (intro.), the
9information specified in par. (a) 4. may be certified and reported to the department
10only once if the municipality submits the information not later than May 1, 2021.
11The department shall make such information available to the public annually in the
12report described in par. (a) (intro.).
AB683-ASA1,21
13Section
21. 66.0615 (5) of the statutes is repealed.
AB683-ASA1,22
14Section
22. 66.1014 (1) (c) of the statutes is created to read:
AB683-ASA1,8,1615
66.1014
(1) (c) “Short-term rental” means a residential dwelling that is offered
16for rent for a fee and for fewer than 30 consecutive days.