December 20, 2019 - Introduced by Representatives Kitchens, Billings, Novak,
Emerson, Bowen, Considine, Dittrich, Duchow, Edming, L. Myers, Pope,
Rodriguez, Skowronski, Spiros, Swearingen and Tranel, cosponsored by
Senators Olsen, Bewley and Jacque. Referred to Committee on Ways and
Means.

AB683,1,8 1An Act to repeal 66.0615 (1) (bs), 66.0615 (1) (de) and 66.0615 (5); to renumber
2and amend 59.25 (3) (e); to amend 66.0615 (1) (dk), 66.0615 (1m) (a), 66.0615
3(1m) (g), 66.0615 (2) (intro.), 66.0615 (2) (a), 66.0615 (2) (b), 66.0615 (4) (a)
4(intro.) and 66.1014 (2) (d) 1.; and to create 59.25 (3) (e) 1., 59.25 (3) (e) 2.,
566.0615 (1) (bt), 66.0615 (1r), 66.0615 (2) (f), 66.0615 (2m), 66.0615 (4) (a) 4.,
666.0615 (4) (d) and 66.1014 (1) (c) of the statutes; relating to: expanding
7applicability of the room tax, making substantive and technical changes to the
8local room tax, and providing a penalty.

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 $500 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 $45,000, 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 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. In addition, the bill repeals the probable cause component.

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. 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.