[Code 1982, § 3.13; Ord. No. 1308, 9-27-2016; Ord. No. 1352, 7-11-2017; Ord. No. 1433, 5-12-2020]
(1) Definitions. The following terms shall have the designated meaning in this section:
HOTEL AND MOTELMeans 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, including mobile homes as defined in §
66.0435(1)(d) Wis. Stats., 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, sanitarium or nursing home, 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.
Means an entity that provides a platform through which an unaffiliated 3rd party offers to rent a short-term rental to an occupant and collects the consideration for the rental from the occupant.
SHORT-TERM RENTALMeans a residential dwelling that is offered for a fee and for fewer than 29 consecutive days, as defined in Wis. State. Sec 66.015 (1)(dk).
TRANSIENTMeans any person residing for a continuous period of less than one month in a hotel, motel or other furnished accommodation available to the public.
(2) Imposition of tax. Pursuant to §
66.0615 Wis. Stats. a tax is hereby imposed on the privilege and service of furnishing, at retail, except sales for resale, of rooms or lodging to transients by hotel keepers, motel operators, lodging marketplaces, owners of short-term rentals, and other persons furnishing accommodations that are available to the public, irrespective of whether membership is required for the use of the accommodations, but such tax shall apply only if such services are subject to the Wisconsin Sales Tax imposed by §§
77.52—
77.62 Wis. Stats. Such tax shall be at the rate of eight percent of the gross receipts from such retail furnishing of rooms or lodgings, which tax is an increase of two percent from the previous tax rate. Such tax shall not be subject to the selective sales tax imposed by §
77.52(2)(a)1 Wis. Stats.
(3) Tax monies. Collection and distribution of tax monies shall be in accordance with the following:
(a) Collection of tax. This section shall be administered by the finance director. The tax imposed 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 finance director, by those furnishing at retail such lodging, on or before the same date on which such tax is due and payable. Such return shall show the gross receipts of the preceding calendar quarter from such retail furnishing of rooms or lodging, the amount of taxes imposed for such period, and other such information as the finance director deems necessary. Every person required to file such quarterly return shall, with his 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 contain certain such additional information as the finance director requires. Such annual returns shall be made on forms as prescribed by the finance director. All such returns shall be signed by the person required to file a return or his duly authorized agent, but need not be verified by oath. The finance director may, for good cause, extend the time for filing any return, but in no event longer than one month from the filing date.
(b) Beginning with room tax collected on January 1, 2017 the City shall retain only such room tax for purposes other than tourism promotion and tourism development as provided for in §
66.0615 (dm) Wis. Stats. These funds retained by the City shall be allocated only for purposes related to City parks and/or Wildwood Park and Zoo development.
(4) Permit required. Every person furnishing rooms or lodging under subsection
(2) of this section shall file with the city clerk an application for a permit for each place of business. Every application for a permit shall be made upon a form prescribed by the city clerk and shall set forth the name under which the applicant transacts or intends to transact business, the location of the place of business, and such other information as the city clerk 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 sellers. At the time of making an application the applicant shall pay to the city clerk a fee of $10.00 for each permit.
(a) Exceptions. Short-term rental owners are not subject to the requirements of subsection (4). Short-term rental owners must adhere to the requirements in Chapter
9, Article
VI of the Municipal Code.
(5) Permit regulations. After compliance with subsections
(3) and (14) of this section by the applicant, the city clerk shall grant and issue to each applicant a separate permit for each place of business within the city. Such permit is not assignable and is valid only for the person in whose name it is issued and for the transaction of business at the place designated therein. It shall at all times be conspicuously displayed at the place for which issued.
(6) Suspension or revocation of permits. Whenever any person fails to comply with this section the city clerk may, upon ten days' notification, and after affording such person the opportunity to show cause why his permit should not be revoked, revoke or suspend any or all of the permits held by such person. The city clerk shall give to such person written notice of the suspension or revocation of any of his permits. The city clerk shall not issue a new permit after the revocation of a permit unless he is satisfied that the former holder of the permit will comply with the provisions of this section. A fee of $10.00 shall be imposed for the renewal or issuance of a permit which had been previously suspended or revoked.
(7) Liability for tax. 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 of the purchase price to cover such amount until the former owner produces a receipt from the finance director that he 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.
(8) Enforcement of Room Tax Collection: The finance director as a means of collecting room tax may exchange audit and other information with the department of revenue and may do any of the following:
(a) If the finance director 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 subject to the room tax to determine whether the correct amount of room tax is assessed and whether any room tax return is correct.
(b) Any person who fails to comply with a request to inspect and audit the person’s financial records under par. (a) shall be subject to a forfeiture, not to exceed 5% of the room tax under section
4-38 (2) of this Code or under section
4-38 (8)(c).
(c) Determine the room tax due according to its best judgement if a person required to made a return fails, neglects or refuses to do so for the amount, in the manner and form and within the time prescribed by the finance director.
(d) Require each person who is subject to paragraph (c) to pay an amount of taxes that the finance director determines to be due under paragraph (c) plus interest at the rate of 1% per month on the unpaid balance. No refund or modification of the payment determined may be granted until the person files a correct room tax return and permits the municipality or district to inspect and audit his or her financial records under paragraph (a).
(e) If a person subject to the room tax fails to pay under section
4-38(2), the person shall be subject to a forfeiture, not to exceed 25% of the room tax due for the previous year under 4-38(2) or paragraph (c) herein, or $5,000 whichever is less.
(9) Late filing fee. Delinquent tax returns shall be subject to a late filing fee of $35. The room tax imposed under this section shall become delinquent if not paid:
(a) In the case of a timely filed return, within 30 days after the due date of the return, or within 30 days after expiration of an extension period if one has been granted.
(b) In the case of no return being filed or a return filed late, by the due date of the return.
(10) Records. Every person liable for payment of room tax shall keep or cause to be kept such books, records, memoranda, receipts, invoices and other pertinent papers, property, or other forms necessary for the finance director to verify the tax liability of the person or of another person.
(11) Confidentiality. Confidentiality shall be maintained in accordance with the following:
(a) All tax returns, schedules, exhibits, writings or audit reports relating to such returns, on file with the finance director, are deemed to be confidential, except the finance director or his or her designee may divulge their contents to the following:
1. The person who filed the return.
2. Officers, agents or employees of the Wisconsin State of Revenue.
3. The assessor; city attorney; mayor; city administrator; or finance, budget and personnel committee chairperson as may be required in the performance of their duties.
4. Such other public officials of the City of Marshfield as may be deemed necessary by the finance director in the performance of duties of any office.
5. Any person who is authorized by operation of law or court order.
(b) No person shall make known in any manner the business affairs, operations or information obtained by an investigation of records received or obtained under this section of any person on whom a tax is imposed by this section, or the amount or source of income, profits, losses or expenditures, or any particular thereof, set forth or disclosed in any return, or to permit any return to copy thereof to be seen or examined by any persons unless provided by this section except:
1. As may be necessary in the discharge of duties imposed by law or of the duties of his or her office or by order of a court.
2. Publishing of statistics is authorized if classified so as not to disclose the identity of particular returns.
3. Any person violating this subpart as to confidentiality shall be subject to a forfeiture of not less than $100 nor more than $500.
(12) Tax collection fee. Any person who collects and remits the tax imposed by this section shall be entitled to a collection fee of two percent of the tax so collected. The fee shall be itemized on the tax return and shall be retained from the amount collected and remitted.
(13) Penalty. Any person who is subject to the room tax as provided in this section and fails to obtain a permit as required in Subsection
(4) of this section or any person who violates any other provision of this section the penalty for which has not been specifically provided for shall be subject to a forfeiture of not less than $100 nor more than $500.