Village of Mount Pleasant, WI Division 2 Room Tax

§ 2-321 Room Tax.

[Amended 9-25-2023 by Ord. No. 20-2023]

(a) Definitions. As used in this section, the following terms shall have the meanings indicated:

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, 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, including mobile homes as defined in Wis. Stats. § 101.91(10), manufactured homes as defined in Wis. Stat § 101.91(2), and recreational vehicles as defined in Wis. Stats. § 340.01(48r), rented for a continuous period of more than one month and accommodations furnished by any hospitals, sanatoriums, 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. In this subdivision, "one month" means a calendar month or 30 days, whichever is less, counting the first day of the rental and not counting the last day of the rental.

OPERATOR

A person, firm or association of any kind which owns a hotel or motel as defined in this section.

TOURISM PROMOTION AND TOURISM DEVELOPMENT

Any of the following that are significantly used by transient tourists and reasonably likely to generate paid overnight stays at more than one establishment on which room tax may be imposed:

(1) Marketing projects, including advertising media buys, creation and distribution of printed or electronic promotional tourist materials, or efforts to recruit conventions, sporting events, or motorcoach groups.

(2) Transient tourist informational services.

(3) Tangible municipal development, including, but not limited to, a convention center.

TRANSIENT

Any person residing for a continuous period of less than one month in a hotel, motel or other furnished accommodations available to the public.

(b) Tax imposed. Pursuant to the authority of Wis. Stats. § 66.0615(1m)(a) and incorporated herein by reference, the Village hereby imposes a tax in the amount of 8% of gross receipts from the lease or rental of a hotel or motel to transient persons within the Village. Any tax so imposed shall not be subject to the selective sales tax imposed by Wis. Stats. § 77.52(2)(a)1.

(c) Reporting required.

(1) Every operator covered by this section shall submit a monthly report to the Village Finance Director showing the gross receipts from furnishing accommodations and the tax due to the Village. The report and tax shall be submitted on the 20th of each month for the receipts of the previous month. The monthly report shall be signed by the operator.

(d) Tourism commission.

(1) Creation. There is hereby created a Village of Mount Pleasant Tourism Commission to coordinate tourism promotion and development in the Village.

(2) Composition. The Commission shall consist of no less than four but no more than six members. At least one Commissioner shall represent the Wisconsin hotel and motel industry. Commissioners shall be appointed by the Village President and confirmed by a majority of the members of the Village Board who are present when the vote is taken.

(3) Term. Commissioners shall serve for a one-year term expiring on January 1 at the pleasure of the Village President. Commissioners may be reappointed.

(4) Officers. The Commission shall elect a Chairperson, Vice Chairperson and Secretary at the first meeting held after January 1 of each year.

(5) Meetings. The Commission shall meet regularly and conduct its proceedings in accordance with Robert's Rules of Order.

(6) Duties.

a. Use the room tax appropriated to the Commission for tourism promotion and tourism development within the Village and contract with an organization to perform the functions of a tourism entity.

b. Report any delinquencies or inaccurate reporting pertaining to room tax collection to the Village.

c. Submit a report to the Village Board on or before November 1 of each year itemizing its expenditures and proposing its budget for the following year.

(e) Appropriation.

(1) The Village shall appropriate 75% of room tax revenue to the Tourism Commission.

(f) Enforcement.

(1) The Village adopts by reference the enforcement provisions in Wis. Stats. § 66.0615 as amended from time to time, including:

a. If the Village has probable cause to believe that the correct amount of room tax has not been assessed or that the tax return is not correct, inspect and audit the financial records of any person operator pertaining to the furnishing of accommodations to determine whether the correct amount of room tax is assessed and whether any room tax return is correct.

b. A forfeiture of 5% of the tax due for failure to comply with a request to inspect or audit.

c. The Village Finance Director shall determine the tax due in his or her best judgment if the operator fails, neglects or refuses to furnish a complete report within 30 days of the date it is due.

d. The amount of tax which the Finance Director determines is due under Subsection (f)(1)c is additionally subject to 1% per month payment of the unpaid balance. No refund or modification of the amount may be made until the operator files a correct report and allows the Village to inspect and audit the accommodation's financial records.

e. The Village Board may subject any operator who fails to pay a tax when due an assessment of up to 25% of the room tax due or $5,000, whichever is less.

(2) If a false or fraudulent report is filed with the intent to evade the tax imposed, the Village Board may additionally subject the operator to an assessment of 50% of the tax due.

(3) Upon conviction for violation of any provision of this section, the court shall impose the above amounts as forfeitures and order the payment of the forfeiture, tax and cost of prosecution and, in default of payment of the forfeiture tax and cost of prosecution, may order the operator imprisoned for up to 90 days in the county jail.