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LRB-2205/1
JK&EVM:amn
2021 - 2022 LEGISLATURE
March 10, 2021 - Introduced by Senators Ballweg, Jacque and Ringhand,
cosponsored by Representatives Kitchens, Billings, Krug, Dallman,
Duchow, Edming, Emerson, Mursau, B. Meyers, Novak, J. Rodriguez, Rozar,
Skowronski, Spiros, Spreitzer and Subeck. Referred to Committee on
Financial Institutions and Revenue.
SB198,1,8 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 to impose a forfeiture on a marketplace
provider 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. A “marketplace provider” is
defined as 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.
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 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 90 days after the bill's effective date, 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 local exposition 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:
SB198,1 1Section 1. 59.25 (3) (e) of the statutes is renumbered 59.25 (3) (e) (intro.) and
2amended to read:
SB198,3,3
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:
SB198,2 4Section 2. 59.25 (3) (e) 1. of the statutes is created to read:
SB198,3,65 59.25 (3) (e) 1. The completed tax roll settlement sheets prescribed under s.
670.09 (3).
SB198,3 7Section 3. 59.25 (3) (e) 2. of the statutes is created to read:
SB198,3,98 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.
SB198,4 10Section 4. 66.0615 (1) (bs) of the statutes is repealed.
SB198,5 11Section 5. 66.0615 (1) (bt) of the statutes is created to read:
SB198,3,1412 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).
SB198,6 15Section 6 . 66.0615 (1) (bu) of the statutes is created to read:
SB198,3,1616 66.0615 (1) (bu) “Marketplace seller” has the meaning given in s. 77.51 (7j).
SB198,7 17Section 7 . 66.0615 (1) (de) of the statutes is amended to read:
SB198,3,1918 66.0615 (1) (de) “Occupant” means a person who rents a short-term rental
19through a lodging marketplace provider.
SB198,8 20Section 8 . 66.0615 (1) (dk) of the statutes is amended to read:
SB198,3,2221 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.
SB198,9 23Section 9. 66.0615 (1m) (a) of the statutes is amended to read:
SB198,4,1624 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.
SB198,10 17Section 10. 66.0615 (1m) (g) of the statutes is amended to read:
SB198,4,2118 66.0615 (1m) (g) Sections 77.51 (10), (12m), (13), (13g), (14), (14g), (15a), (15b),
19and (17),
77.52 (3), (3m) and , (13), (14), (18), and (19), 77.522, 77.523, 77.53 (7), 77.54,
2077.58 (6m), and 77.585,
as they apply to the taxes under subch. III of ch. 77, shall
21apply to the tax imposed under par. (a) by a municipality.
SB198,11 22Section 11 . 66.0615 (1r) of the statutes is created to read:
SB198,5,623 66.0615 (1r) (a) A marketplace provider shall collect the tax imposed by a
24municipality under sub. (1m) for a marketplace seller, unless the marketplace
25provider has been issued a waiver under s. 77.52 (3m) (b) or (c), and forward it to the

1municipality, on a quarterly basis, along with a form prepared by the department of
2revenue as described under par. (b). The marketplace provider shall notify the
3marketplace seller that the marketplace provider has collected and forwarded the
4taxes described in this paragraph. A municipality may not impose and collect a room
5tax from the marketplace seller if the municipality collects the room tax as described
6in this paragraph.
SB198,5,97 (b) The form prepared by the department of revenue as described under par.
8(a) shall contain at least the following information about the room tax imposed under
9sub. (1m) on the marketplace provider:
SB198,5,1010 1. The total sales for properties located in a municipality with a room tax.
SB198,5,1211 2. The total number of nights properties located in a municipality with a room
12tax were rented.
SB198,5,1313 3. The rate of the room tax applied to the amount specified in subd. 1.
SB198,5,1514 4. The total tax collected for properties located in a municipality with a room
15tax.
SB198,5,1816 (c) No later than 90 days after the effective date of this paragraph .... [LRB
17inserts date], and updated annually, the department of revenue shall create a
18website that contains the following information about room tax collections:
SB198,5,2019 1. The name and mailing address of each municipality that imposes a room tax
20under sub. (1m).
SB198,5,2121 2. The rate of the room tax imposed by each municipality specified in subd. 1.
SB198,12 22Section 12. 66.0615 (2) (intro.) of the statutes is amended to read:
SB198,6,223 66.0615 (2) (intro.) As a means of enforcing the collection of any room tax
24imposed by a municipality or a district under sub. (1m), the municipality or district

1may exchange audit and other information with the department of revenue and may
2do any of the following:
SB198,13 3Section 13. 66.0615 (2) (a) of the statutes is amended to read:
SB198,6,104 66.0615 (2) (a) If a municipality or district has probable cause to believe that
5the correct amount of room tax has not been assessed or that the tax return is not
6correct, inspect and audit the financial records of any person subject to sub. (1m)
7pertaining to the furnishing or selling of accommodations to determine whether the
8correct amount of room tax is assessed and whether any room tax return is correct
9due. A determination under this paragraph shall be provided in writing within 4
10years after the due date of the return, unless no return has been filed
.
SB198,14 11Section 14 . 66.0615 (2) (b) of the statutes is amended to read:
SB198,6,1512 66.0615 (2) (b) Enact a schedule of forfeitures, not to exceed 5 percent of the
13tax under sub. (1m) or par. (c), to be imposed on any person subject to sub. (1m) who
14fails to comply with a request to inspect and audit the person's financial records
15under par. (a).
SB198,15 16Section 15 . 66.0615 (2) (e) of the statutes is amended to read:
SB198,6,2217 66.0615 (2) (e) Enact a schedule of forfeitures, not to exceed 25 percent of the
18room tax due for the previous year under sub. (1m) or par. (c) or $5,000, whichever
19is less, to be imposed for failure to pay the tax under sub. (1m). This paragraph also
20applies to a marketplace provider that is required to collect and remit taxes imposed
21by a municipality under sub. (1m), but that fails to file a return as required in sub.
22(1r) or pay the required tax.
SB198,16 23Section 16. 66.0615 (2m) of the statutes is created to read:
SB198,7,3
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.
SB198,7,94 (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.
SB198,17 10Section 17 . 66.0615 (3) of the statutes is amended to read:
SB198,7,1811 66.0615 (3) The municipality shall provide by ordinance and the district shall
12provide by resolution for the confidentiality of information obtained under sub. subs.
13(1r) and
(2) but shall provide exceptions for persons using the information in the
14discharge of duties imposed by law or of the duties of their office or by order of a court.
15The municipality or district may provide for the publishing of statistics classified so
16as not to disclose the identity of particular returns. The municipality or district shall
17provide that persons violating ordinances or resolutions enacted under this
18subsection may be required to forfeit not less than $100 nor more than $500.
SB198,18 19Section 18 . 66.0615 (4) (a) (intro.) of the statutes is amended to read:
SB198,7,2320 66.0615 (4) (a) (intro.) Annually Except as provided in par. (d), annually, on or
21before May 1, on a form created and provided by the department of revenue, every
22municipality that imposes a tax under sub. (1m) shall certify and report to the
23department, beginning in 2017, all of the following:
SB198,19 24Section 19 . 66.0615 (4) (a) 4. of the statutes is created to read:
SB198,8,3
166.0615 (4) (a) 4. For a municipality subject to sub. (1m) (dm), the amount of
2the room tax retained by the municipality in each of the following fiscal years: 2010,
32011, 2012, 2013, and 2014.
SB198,20 4Section 20 . 66.0615 (4) (d) of the statutes is created to read:
SB198,8,95 66.0615 (4) (d) Notwithstanding the requirement in par. (a) (intro.), the
6information specified in par. (a) 4. may be certified and reported to the department
7only once if the municipality submits the information not later than May 1, 2022.
8The department shall make such information available to the public annually in the
9report described in par. (a) (intro.).
SB198,21 10Section 21. 66.0615 (5) of the statutes is repealed.
SB198,22 11Section 22. 66.1014 (1) (c) of the statutes is created to read:
SB198,8,1312 66.1014 (1) (c) “Short-term rental” means a residential dwelling that is offered
13for rent for a fee and for fewer than 30 consecutive days.
SB198,23 14Section 23 . 66.1014 (2) (d) 1. of the statutes is amended to read:
SB198,8,2315 66.1014 (2) (d) 1. If a residential dwelling is rented for periods of more than 6
16but fewer than 29 30 consecutive days, a political subdivision may limit the total
17number of days within any consecutive 365-day period that the dwelling may be
18rented to no fewer than 180 days. The political subdivision may not specify the period
19of time during which the residential dwelling may be rented, but the political
20subdivision may require that the maximum number of allowable rental days within
21a 365-day period must run consecutively. A person who rents the person's
22residential dwelling shall notify the clerk of the political subdivision in writing when
23the first rental within a 365-day period begins.
SB198,24 24Section 24. Effective dates. This act takes effect on the first day of the
25calendar quarter that is at least 3 months after publication, except as follows:
SB198,9,1
1(1) The creation of s. 66.0615 (1r) (c) takes effect on the day after publication.
SB198,9,22 (End)
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