[Adopted by Ord. No. 19-07 (Ch. 33 of the 1993 Municipal Code)]
[Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. II)]
Except as defined below, terms used in this article shall have the definitions ascribed to them in § 66.0615, Wis. Stats.
OPERATORS
Hotelkeepers, motel operators, marketplace provider, marketplace sellers/owners of short-term rentals, and other persons retail selling or furnishing accommodations that are available to the public, which are located in the City and are obligated to pay room taxes under this article.
QUARTERLY PAYMENT DATE
Each January 31, April 30, July 31, and October 31, each of which is the last day of the month next succeeding the end of a calendar quarter.
ROOM TAX
A tax on the sales price from selling at retail, rooms or lodging to transients by the operators pursuant to the Room Tax Act.
ROOM TAX ACT
Section 66.0615, Wis. Stats., as amended from time to time.
ROOM TAX COMMISSION
The Edgerton Room Tax Commission created by the municipalities within the Tourism Zone pursuant to the Room Tax Commission Agreement in order to coordinate tourism promotion and tourism development within the Tourism Zone.
ROOM TAX COMMISSION AGREEMENT
The Room Tax Commission Agreement, dated October 1, 2019, entered into by and among the municipalities and the Room Tax Commission, as amended from time to time.
TOURISM ZONE
That geographic area encompassing the City of Edgerton, Wisconsin; the Town of Albion, Wisconsin; and the Town of Fulton, Wisconsin, that hereafter becomes a party to the Room Tax Commission Agreement.
A. 
Tax imposed. Pursuant to the Room Tax Act, there is hereby imposed a 5% room tax on the sales price from selling, at retail, rooms or lodging to transients, by the operators. Operators shall remit all room taxes to the City Treasurer in accordance with the requirements of this article and the Room Tax Act. Such tax shall not be subject to the selective sales tax imposed by § 77.52(2)(a)1, Wis. Stats., and may not be imposed upon sales to the federal government and persons listed under § 77.54(9a), Wis. Stats. The room tax shall be allocated as follows:
[Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. II)]
(1) 
Seventy percent shall be imposed and allocated toward the support of the Room Tax Commission, to be used for the promotion of the Tourism Zone as a tourism destination.
(2) 
Twenty eight percent ("municipal room tax") shall be imposed and retained by the City of Edgerton to be used as determined by the City Council.
(3) 
Two percent may be retained by the operator for administration costs.
B. 
Taxation effective date. The effective date of the room tax shall be January 1, 2020.
C. 
Room tax payment frequency. Room tax shall be paid by the operator on a quarterly basis. It shall be paid by the end of the month following the quarter in which it was collected to the City Treasurer.
D. 
Quarterly room tax return.
(1) 
The quarterly room tax return filed with the room tax payment by the operator shall contain the following information: name of the business, physical address, postal address, municipality located within, name of the designated person filling out the return, quarter and year the return is for, total available rental units during each month of the quarter (number of rental units in the facility multiplied by the days in the quarter or days they were open), number of rooms or units rented, total lodging sales for each month, room tax to be paid (which should equal total lodging sales multiplied by the 5% room tax) and the signature of the person filling out this return, attesting to the accuracy. This information will allow the municipality or Commission to judge the accuracy of the return and with all returns in total, to judge the effectiveness of the tourism promotion.
(2) 
Every operator required to file such quarterly report shall, with the first report, elect to file an annual report based on either the calendar year or its fiscal year. Such annual report shall be filed within 90 days of the close of each such calendar or fiscal year. The annual return shall summarize the quarterly reports, shall reconcile and adjust for errors in the quarterly reports, and shall contain certain such additional information as the City requires. Such annual reports shall be signed by a representative of the operator or its duly authorized agent, but need not be verified by oath. The City may, for good cause, extend the time of filing any report, but in no event shall such extension be longer than one month after the due date.
E. 
Priority of payment. In the event any operator fails to remit the entire room tax amounts due on any quarterly payment date under this article, the City directs that the amounts actually received by the City shall be applied in the following priority order:
(1) 
First, to the Room Tax Commission until paid in full;
(2) 
Second, to the City general fund.
F. 
Confidentiality of reports. All room tax returns, schedules, exhibits, writings or audit reports relating to such returns, on file with the Commission and the municipality, are deemed confidential pursuant to § 66.0615(3), Wis. Stats., except they may divulge their contents to the following, and no others:
(1) 
The person who filed the return.
(2) 
Officers, employees or agents of the City Treasurer and the Commission.
(3) 
Other persons for the use in the discharge of duties imposed by law, or in the discharge of the duties of their office (unless otherwise prohibited by law), or by order of a court.
The Room Tax Commission shall contract with a "tourism entity," or "qualified nonprofit organization," as those terms are defined in the Room Tax Act (collectively, "tourism entity") for purposes of providing staff, support services and assistance to promote the Tourism Zone to visitors as more fully set forth in an agreement between the Room Tax Commission and the tourism entity.
A. 
This article shall be administered by the City Treasurer.
B. 
Permit required. Every operator under this article shall annually file with the City Clerk an application for a permit for each place of business that is required to collect room tax hereunder before providing lodging for transients. Every application for a permit shall be made upon a form prescribed by the City and shall pay an annual fee as set by the City Council and set forth the name under which the applicant transacts or intends to transact business, the location of place of business, and such other information as the City requires. The application shall be signed by the owner if a sole proprietor and, if not a sole proprietor, by the person authorized to act on behalf of such owner. At the time of making an application, the applicant shall pay the City an initial fee as set by the City Council for each permit. A permit issued hereunder is nontransferable.
[Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. II)]
The City shall enforce this article in accordance with the Room Tax Act.
A. 
Penalty for violations. In addition to the forfeiture set forth in § 55-25C, any operator in violation of the terms of this article by failing to obtain and maintain a permit, when such permit is required, shall be subject to a forfeiture not to exceed $200 for each violation. Each room or unit separately rented or offered for rent, and each day of such rental or offer for rental of such unit, shall be a separate violation. In addition, injunctive relief is hereby authorized to discontinue any violation of this article. Any operator deemed to have violated any of the provisions of this article shall be obligated to pay the costs of prosecution, in addition to actual attorneys' fees expended in the course of said enforcement. The City may revoke or suspend any permit issued hereunder for failure to comply with the provisions hereof.
B. 
Liability for tax on sale or transfer of business. If any operator liable for any amount of tax under this article sells or transfers all or substantially all of its interest in its hotel, motel or other lodging accommodation, its successors or assigns shall withhold sufficient amounts from the purchase price to pay any amount of room tax liability due through the sale or transfer date until the operator produces a receipt that its liability has been paid in full or a certificate stating that no room tax amount is due. If a successor operator subject to the tax imposed by this article fails to withhold such amount from the purchase price as required, such successor operator shall become personally liable for payment of the room tax amount it is required to withhold.
C. 
Delinquent room tax. Delinquent room tax returns shall be subject to a $25 late filing fee. The tax imposed by this article shall become delinquent if not paid by the due date of the return. A forfeiture of 25% of the room tax due or $5,000, whichever is less, of the tax imposed is hereby established and due and owing in the event that the room tax is not paid within 30 days after the due date of the return. In addition to this forfeiture, all unpaid taxes under this article shall bear interest at the rate of 1% per month from the due date of the return until received and deposited by the City Treasurer.
D. 
Inspection and audit of financial records. Whenever the City Treasurer has probable cause to believe that the correct amount of room tax has not been assessed or that the tax return is not correct, or that the tax has not been paid, the City Treasurer is authorized to examine and inspect the books, records, memoranda and property of any person in order to verify the tax liability of the person or another person to determine the amount of tax owed. Any operator who fails to comply with a request to inspect and audit the operator's financial records shall be subject to a forfeiture in an amount equal to 5% of amount of tax due in the best judgment of the City Treasurer. The operator shall pay the amount of tax determined due by the City Treasurer plus interest at the rate of 1% per month on the unpaid balance. If any past due tax, interest or penalties are due at the beginning of a calendar year, a new annual room tax-lodging permit will not be issued by the Clerk of the municipality unless satisfactory financial arrangements have been made with the City Treasurer to satisfy payment.