[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.
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.
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.
A tax on the sales price from selling at retail, rooms or
lodging to transients by the operators pursuant to the Room Tax Act.
Section 66.0615, Wis. Stats., as amended from time to time.
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.
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.
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:
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:
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.
