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LRBs0288/1
MES/JK/EVM:all
2019 - 2020 LEGISLATURE
SENATE SUBSTITUTE AMENDMENT 1,
TO SENATE BILL 646
February 18, 2020 - Offered by Senator Olsen.
SB646-SSA1,1,8 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 (2)
4(e), 66.0615 (3), 66.0615 (4) (a) (intro.) and 66.1014 (2) (d) 1.; and to create 59.25
5(3) (e) 1., 59.25 (3) (e) 2., 66.0615 (1) (bt), 66.0615 (1) (bu), 66.0615 (1r), 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 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 forfeiture may not exceed 25 percent of the room tax due for the previous
year or $5,000, whichever is less.
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. The form prepared by DOR must include 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, and the total tax collected.
Annually, beginning before July 31, 2020, 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 and the bill, 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 current law, a person who fails to comply with a request to
inspect and audit such records is subject to a forfeiture not exceeding 5 percent of the
room tax imposed or 5 percent of what the municipality or district determines the
room tax should be, according to its best judgment. Under the bill, this same
forfeiture may be imposed on a marketplace provider if the municipality or district
has made three requests to inspect and audit the requested records and the
marketplace provider fails to respond or comply with the request.
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. 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:
SB646-SSA1,1
1Section 1. 59.25 (3) (e) of the statutes is renumbered 59.25 (3) (e) (intro.) and
2amended to read:
SB646-SSA1,3,53 59.25 (3) (e) (intro.) Annually by March 15, furnish to the department of
4revenue the completed tax roll settlement sheets prescribed under s. 70.09 (3). all of
5the following:
SB646-SSA1,2 6Section 2. 59.25 (3) (e) 1. of the statutes is created to read:
SB646-SSA1,3,87 59.25 (3) (e) 1. The completed tax roll settlement sheets prescribed under s.
870.09 (3).
SB646-SSA1,3 9Section 3. 59.25 (3) (e) 2. of the statutes is created to read:
SB646-SSA1,3,1110 59.25 (3) (e) 2. The complete county tax roll, as that term is used in s. 70.65,
11in a form and manner prescribed by the department.
SB646-SSA1,4 12Section 4. 66.0615 (1) (bs) of the statutes is repealed.
SB646-SSA1,5 13Section 5. 66.0615 (1) (bt) of the statutes is created to read:
SB646-SSA1,3,1614 66.0615 (1) (bt) “Marketplace provider” has the meaning given in s. 77.51 (7i),
15to the extent that the marketplace provider facilitates the sale or furnishing of
16rooms, lodging, or other accommodations to transients under sub. (1m) (a).
SB646-SSA1,6 17Section 6 . 66.0615 (1) (bu) of the statutes is created to read:
SB646-SSA1,3,1818 66.0615 (1) (bu) “Marketplace seller” has the meaning given in s. 77.51 (7j).
SB646-SSA1,7 19Section 7 . 66.0615 (1) (de) of the statutes is amended to read:
SB646-SSA1,3,2120 66.0615 (1) (de) “Occupant” means a person who rents a short-term rental
21through a lodging marketplace provider.
SB646-SSA1,8 22Section 8 . 66.0615 (1) (dk) of the statutes is amended to read:
SB646-SSA1,3,2423 66.0615 (1) (dk) “Short-term rental” means a residential dwelling that is
24offered for rent for a fee and for fewer than 29 30 consecutive days.
SB646-SSA1,9 25Section 9. 66.0615 (1m) (a) of the statutes is amended to read:
SB646-SSA1,4,18
166.0615 (1m) (a) The governing body of a municipality may enact an ordinance,
2and a district, under par. (e), may adopt a resolution, imposing a tax on the privilege
3of
sales price from selling or furnishing, at retail, except sales for resale, rooms or
4lodging to transients by hotelkeepers, motel operators, lodging marketplaces,
5marketplace providers, owners of short-term rentals, and other persons or retailers
6selling or
furnishing accommodations that are available to the public, irrespective
7of whether membership is required for use of the accommodations. A tax imposed
8under this paragraph may be collected from the consumer or user, but may not be
9imposed on sales to the federal government and persons listed under s. 77.54 (9a).
10A tax imposed under this paragraph by a municipality shall be paid to the
11municipality and, with regard to any tax revenue that may not be retained by the
12municipality, shall be forwarded by the municipality to a tourism entity or a
13commission if one is created under par. (c), as provided in par. (d). Except as provided
14in par. (am), a tax imposed under this paragraph by a municipality may not exceed
158 percent of the sales price. Except as provided in par. (am), if a tax greater than 8
16percent of the sales price under this paragraph is in effect on May 13, 1994, the
17municipality imposing the tax shall reduce the tax to 8 percent, effective on
18June 1, 1994.
SB646-SSA1,10 19Section 10. 66.0615 (1m) (g) of the statutes, as created by 2019 Wisconsin Act
2010
, is amended to read:
SB646-SSA1,4,2421 66.0615 (1m) (g) Sections 77.51 (10), (12m), (13), (13g), (14), (14g), (15a), (15b),
22and (17),
77.52 (3), (3m) and , (13), (14), (18), and (19), 77.522, 77.523, 77.53 (7), 77.54,
2377.58 (6m), and 77.585,
as they apply to the taxes under subch. III of ch. 77, shall
24apply to the tax imposed under par. (a) by a municipality.
SB646-SSA1,11 25Section 11 . 66.0615 (1r) of the statutes is created to read:
SB646-SSA1,5,9
166.0615 (1r) (a) A marketplace provider shall collect the tax imposed by a
2municipality under sub. (1m) for a marketplace seller, unless the marketplace
3provider has been issued a waiver under s. 77.52 (3m) (b) or (c) and forward it to the
4municipality, on a quarterly basis, along with a form prepared by the department of
5revenue as described under par. (b). The marketplace provider shall notify the
6marketplace seller that the marketplace provider has collected and forwarded the
7taxes described in this paragraph. A municipality may not impose and collect a room
8tax from the marketplace seller if the municipality collects the room tax as described
9in this paragraph.
SB646-SSA1,5,1210 (b) The form prepared by the department of revenue as described under par.
11(a) shall contain at least the following information about the room tax imposed under
12sub. (1m) on the marketplace provider:
SB646-SSA1,5,1313 1. The total sales for properties located in a municipality with a room tax.
SB646-SSA1,5,1514 2. The total number of nights properties located in a municipality with a room
15tax were rented.
SB646-SSA1,5,1616 3. The rate of the room tax applied to the amount specified in subd. 1.
SB646-SSA1,5,1817 4. The total tax collected for properties located in a municipality with a room
18tax.
SB646-SSA1,5,2019 (c) Before July 31, 2020, and updated annually, the department of revenue shall
20create a website that contains the following information about room tax collections:
SB646-SSA1,5,2221 1. The name and mailing address of each municipality that imposes a room tax
22under sub. (1m).
SB646-SSA1,5,2323 2. The rate of the room tax imposed by each municipality specified in subd. 1.
SB646-SSA1,12 24Section 12. 66.0615 (2) (intro.) of the statutes is amended to read:
SB646-SSA1,6,4
166.0615 (2) (intro.) As a means of enforcing the collection of any room tax
2imposed by a municipality or a district under sub. (1m), the municipality or district
3may exchange audit and other information with the department of revenue and may
4do any of the following:
SB646-SSA1,13 5Section 13. 66.0615 (2) (a) of the statutes is amended to read:
SB646-SSA1,6,126 66.0615 (2) (a) If a municipality or district has probable cause to believe that
7the correct amount of room tax has not been assessed or that the tax return is not
8correct, inspect and audit the financial records of any person subject to sub. (1m)
9pertaining to the furnishing or selling of accommodations to determine whether the
10correct amount of room tax is assessed and whether any room tax return is correct
11due. A determination under this subsection shall be provided in writing within 4
12years after the due date of the return, unless no return has been filed
.
SB646-SSA1,14 13Section 14 . 66.0615 (2) (b) of the statutes is amended to read:
SB646-SSA1,6,1714 66.0615 (2) (b) Enact a schedule of forfeitures, not to exceed 5 percent of the
15tax under sub. (1m) or par. (c), to be imposed on any person subject to sub. (1m) who
16fails to comply with a request to inspect and audit the person's financial records
17under par. (a).
SB646-SSA1,15 18Section 15 . 66.0615 (2) (e) of the statutes is amended to read:
SB646-SSA1,6,2419 66.0615 (2) (e) Enact a schedule of forfeitures, not to exceed 25 percent of the
20room tax due for the previous year under sub. (1m) or par. (c) or $5,000, whichever
21is less, to be imposed for failure to pay the tax under sub. (1m). This paragraph
22applies to a marketplace provider that is required to collect and remit taxes imposed
23by a municipality under sub. (1m), but that fails to file a return as required in sub.
24(1r) or pay the required tax.
SB646-SSA1,16 25Section 16. 66.0615 (2m) of the statutes is created to read:
SB646-SSA1,7,3
166.0615 (2m) (a) To enforce the collection of a room tax imposed by a district
2under sub. (1m), the district may exchange audit and other information relating to
3the room tax with the department of revenue.
SB646-SSA1,7,94 (b) To enforce the collection of a room tax imposed by a municipality under sub.
5(1m), the municipality may jointly inspect and audit the room tax records of a person
6subject to sub. (1m) with other municipalities only for the purpose of conducting a
7joint room tax audit. A municipality may provide audit and other information to the
8department of revenue, and may exchange audit and other room tax related
9information with any municipality that took part in conducting the joint audit.
SB646-SSA1,17 10Section 17 . 66.0615 (3) of the statutes is amended to read:
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