The calendar year shall be the fiscal year.
The amount of the tax to be levied or certified
and the amounts of the various appropriations, and the purposes thereof,
shall not be changed after approval of the budget except by a two-thirds
vote of all the members of the Village Board. Notice of such change
shall be given by posting notices thereof.
No money shall be drawn from the treasury of the Village, nor shall any obligation for the expenditure of money be incurred, except in pursuance of the annual appropriation in the adopted budget or when changed as authorized by §
16-3. At the close of each calendar year, any unencumbered balance of an appropriation shall revert to the general fund and shall be subject to reappropriation; but appropriations may be made by the Board, to be paid out of the income of the current year, in furtherance of improvements or other objects or works which will not be completed within such year, and any such appropriation shall continue in force until the purpose for which it was made has been accomplished or abandoned.
The Treasurer may invest any Village funds not
immediately needed, pursuant to s. 66.04(2), Wis. Stats., but only
with the prior approval of the Board.
[Added 6-4-2012 by Ord. No. 04-2012]
A. Definitions. In this section, the following definitions shall apply:
BED-AND-BREAKFAST ESTABLISHMENT
Any place of temporary lodging that provides four or fewer
rooms for rent, which is open for rental more than 10 nights in a
twelve-month period, is the owner's personal residence and is
occupied by the owner at the time of rental, and in which the only
meal served is breakfast.
GROSS RECEIPTS
Has the meaning as defined in s. 76.48(d), Wis. Stats., insofar
as applicable.
HOTEL or MOTEL
A building or group of buildings in which the public may
obtain accommodations for a consideration, including, without limitation,
such establishments as inns, motels, tourist homes, tourist houses
or courts, bed-and-breakfast establishments, lodging houses, rooming
houses, summer camps, apartment hotels, resort lodges and cabins and
any other building or group of buildings in which accommodations are
available to the public, except accommodations rented for a continuous
period of more than one month and accommodations furnished by any
hospital, sanitariums or nursing homes or by corporations or associations
organized and operated exclusively for religious, charitable or educational
purposes, provided that no part of the net earnings of such corporations
and associations inures to the benefit of any private shareholder
or individual.
RESIDENTIAL DWELLING
Any building, structure, or part of the building or structure,
that is used or intended to be used as a home, residence, or sleeping
place by one person or two or more persons maintaining a common household,
to the exclusion of all others.
[Added 3-18-2019 by Ord.
No. 01-2019]
SHORT-TERM RENTAL
A residential dwelling unit that is offered for rent for
a fee for fewer than 20 consecutive days.
[Added 3-18-2019 by Ord.
No. 01-2019]
TRANSIENT
Any person residing for a continuous period of less than
one month in a hotel, motel or other furnished accommodation available
to the public.
B. Imposition of tax.
(1) Pursuant to s. 66.0615, Wis. Stats., a tax is hereby imposed on the
privilege and services of furnishing, at retail, rooms or lodging
to transients by hotelkeepers, motel operators and other persons furnishing
accommodations, including short-term rentals, that are available to
the public, irrespective of whether membership is required for the
use of the accommodations. Such tax shall be at the rate of 8% of
the gross receipts from such retail furnishing of rooms or lodgings.
Such tax shall not be subject to the selective sales tax imposed by
S 77.52(2)(a)1, Wis. Stats. The Village shall distribute the room
tax as provided by the Wisconsin Statutes.
[Amended 3-18-2019 by Ord. No. 01-2019]
(2) Exemptions. The following room sales are exempt from this tax:
(a)
Sales to the federal government;
(b)
Sales to persons listed under s. 77.54(9a), Wis. Stats.
(3) Exemption conditions. The following conditions must occur for a sale
to be exempt from the room tax:
(a)
The lodging establishment must issue the billing or invoice
for the lodging in the name of the exempt entity; and
(b)
The lodging establishment must receive from the exempt entity:
[1]
In the case of federal and Wisconsin state or local governmental
units, a purchase order, written document (such as a letter of authorization),
or other acceptable authorization; or
[2]
In the case of nonprofit religious, charitable, scientific or
educational organization, the organization's certificate of exempt
status number.
(c)
The exemption still applies if the employee pays with his or
her own funds, as long as the above conditions are met.
C. Collection of tax.
[Amended 3-18-2019 by Ord. No. 01-2019]
(1) Administration by Village Treasurer. This tax shall be administered
by the Village Treasurer who shall, at Village expense, provide the
necessary application and reporting forms at no cost to the taxpayer.
(2) Reporting periods. The tax imposed for the months of January, February
and March, and for each calendar quarter thereafter, is due and payable
on the last day of the month next succeeding the calendar quarter
for which imposed. A return shall be filed with the Village Treasurer,
by those furnishing at retail such rooms and lodging, on or before
the same date on which such tax is due and payable. Such returns shall
show the gross receipts of the preceding calendar quarter from such
retail furnishing of room or lodging, the amount of taxes imposed
for such period, and such other information as the Village Treasurer
deems necessary. Every person required to file such quarterly return
shall, with their first return, elect to file an annual calendar year
or fiscal year return. Such annual return shall be filed within 90
days of the close of each such calendar or fiscal year. The annual
return shall summarize the quarterly returns, reconcile and adjust
for errors in the quarterly returns, and shall contain certain such
additional information as the Village Treasurer requires. Such annual
returns shall be made on forms as prescribed by the Village Treasurer.
All such returns shall be signed by the person required to file a
return or duly authorized agent, but need not be verified by oath.
The Village Treasurer may, for good cause, extend the time for filing
any return, but in no event longer than one month from the filing
date.
(3) Sale or conveyance of business. If any person liable for any amount
of tax under this section sells out his business or stock of goods
or quits the business, his successors or assigns shall withhold sufficient
portion of the purchase price to cover such amount until the former
owner produces a receipt from the Village Treasurer that it has been
paid or a certificate stating that no amount is due. If a person subject
to the tax imposed by this section fails to withhold such amount of
tax from the purchase price as required, he shall become personally
liable for payment of the amount required to be withheld by him to
the extent of the price of the accommodations valued in money.
(4) Determination of tax by audit. The Village Treasurer may, by office
audit, determine the tax required to be paid to the Village or the
refund due to any person under this section. This determination may
be made upon the basis of the facts contained in the return being
audited or on the basis of any other information within the Village
Treasurer's possession. Whenever the Village Treasurer has cause
to believe that the correct amount of room tax has not been assessed
or that the room tax return is not correct, the Village Treasurer
is authorized to examine and inspect the financial records pertaining
to the furnishing of accommodations in question in order to verify
the tax liability of that person or establishment. One or more such
office audit determination may be made of the amount due for any or
for more than one period.
(5) Failure to file return. If any person fails to file a return as required by this chapter, the Village Treasurer shall make an estimate of the amount of the gross receipts under Subsection
C(2) and
(3). Such estimates shall be made for the period for which such person failed to make a return and shall be based upon any information which is in the Village Treasurer's possession or may come into the Village Treasurer's possession. On the basis of this estimate, the Village Treasurer shall compute and determine the amount required to be paid to the Village, adding to the sum thus arrived at a penalty equal to 10% thereof. One or more such determinations may be made for one or more than one period.
(6) Interest on unpaid taxes. All unpaid taxes under this chapter shall
bear interest at the rate of 12% per year from the due date of the
return until the first day of the month following the month in which
the tax is paid or deposited with the Village Treasurer. An extension
of time within which to file a return shall operate to extend the
due date of the return for the purposes of interest computations.
If the Village Treasurer determines that any overpayment of tax has
been made intentionally or by reason of carelessness or neglect, or
if the tax which was overpaid was not accompanied by a complete return,
she shall not allow any interest thereon.
(7) Delinquent returns; late fees; penalty.
(a)
Delinquent tax returns shall be subject to a late filing fee
of $100. The tax imposed by this chapter shall become delinquent if
not paid:
[1]
In the case of a timely filed return, within 30 days after the
due date of the return, or within 30 days after the expiration of
an extension period, if one is granted.
(b)
If due to negligence no return is filed, or a return is filed
late, or an incorrect return is filed, the entire tax finally determined
shall be subject to a forfeiture established herein as follows:
[1]
A forfeiture of 25% or $5,000, whichever is less, of the tax
imposed and is due and owing within 30 days after the due date of
said return.
[2]
If a person fails to file a return when due or files a false
or fraudulent return with the intent in either case to defeat or evade
a tax imposed by this section, a forfeiture of 50% of the entire tax
finally determined shall be added to the tax required to be paid exclusive
of interest and other penalties.
D. Security required. In order to protect the revenue of the Village,
the Village Clerk-Treasurer may require any person liable for the
tax imposed by this chapter to place with her before or after a permit
is issued such security not in excess of $100 as the Village Clerk-Treasurer
shall determine. If any taxpayer fails or refuses to place security,
the Village Clerk-Treasurer may revoke or refuse to issue such permit.
If any taxpayer is delinquent in the payment of the taxes imposed
by this section, the Village Clerk-Treasurer may, upon 10 days'
notice, recover the taxes, interest and penalties from the security
placed with the said Clerk-Treasurer by such taxpayer. No interest
shall be paid or allowed by the Village to any persons for the deposit
of such security.
E. Records to be maintained. Every person liable for the tax imposed
by this section shall keep or cause to be kept such records, receipts,
invoices and other pertinent papers in such form as the Village Clerk-Treasurer
and this chapter shall require. Such records shall be retained and
made available for a period of five years from the date of a filing
period.
F. Confidentiality maintained.
(1) All tax returns, schedules, exhibits, writings or audit reports relating
to such returns on file with the Village Clerk-Treasurer are deemed
to be confidential, except the Village Clerk-Treasurer may divulge
their contents to the following and no others:
(a)
The person who filed the return.
(b)
Officers, agents or employees of the Federal Internal Revenue
Service or the State Department of Revenue.
(c)
Officers, employees or agents of the Village Auditors.
(d)
Such other public officers of the Village of Cottage Grove when
deemed necessary.
(2) No person having an administrative duty under this section shall
make known in any manner the business affairs, operations or information
obtained by an investigation of records of any person on whom a tax
is imposed by this section or the amount or source of income, profits,
losses, expenditures or any particulars thereof, set forth or disclosed
in any return, or to permit any return or copy thereof to be seen
or examined by any person, except as provided above.
G. Violations and penalties. Any person who is subject to the tax imposed
by this chapter who fails or refuses to permit the inspection of records
by the Village Clerk-Treasurer after such inspection has been duly
requested by such Village Clerk-Treasurer, or who fails to file a
return as provided in this chapter, or who violates any other provision
of this chapter, shall be subject to:
(1) A forfeiture, not to exceed 5% of the room tax, may be imposed for
a failure to comply with a request to inspect and audit required financial
records.
(2) Require the amount of taxes due to be paid plus interest at the rate
of 1% per month on the unpaid balance. No refund or modification of
the payment may be granted until the person files a correct room tax
return, and permits the municipality to inspect and audit the financial
records.
(3) Forfeiture, not to exceed 25% of the room tax due for the previous
year or $3,000, whichever is less, of the tax imposed, in the event
the room tax is not paid.
(4) Each day, or portion thereof, that such violation continues is hereby
deemed to constitute a separate offense.