SB 526

Generally, under current law, the governing body of a city, village, town, or

county (political subdivision) may, by a two-thirds vote of the members of the

governing body, enact an ordinance or adopt a resolution declaring itself to be a

premier resort area if at least 40 percent of the equalized assessed value of the

taxable property within the political subdivision is used by tourism-related

retailers. "Tourism-related retailers" is defined to be certain retailers who are

classified in the standard industrial classification manual that is published by the

U.S. Office of Management and Budget. The statutory definition includes 21

retailers who are so classified, including variety stores, dairy product stores, gasoline

service stations, eating places, drinking places, and hotels and motels.

A premier resort area may impose a tax at a rate of 0.5 percent of the gross

receipts from the sale, lease, or rental of goods or services that are subject to the

general sales and use tax and are sold by tourism-related retailers. The proceeds

of the tax may be used only to pay for infrastructure expenses within the jurisdiction

of the premier resort area. The definition of "infrastructure expenses" includes the

costs of purchasing, constructing, or improving parking lots; transportation

facilities, including roads and bridges; sewer and water facilities; recreational

facilities; fire fighting equipment; and police vehicles.

Also under current law, the city of Eagle River, the city of Bayfield, the village

of Ephraim, and the village of Sister Bay are authorized to enact an ordinance or

adopt a resolution to become a premier resort area notwithstanding the fact that

neither city nor village meets the generally applicable requirement that at least 40

percent of the equalized assessed value of the taxable property within a political

subdivision be used by tourism-related retailers. In the cases of Sister Bay and

Ephraim, the premier resort area tax may not take effect in either village unless it

is approved in a referendum of the electors.

This bill allows the village of Stockholm to become a premier resort area

notwithstanding the fact that it does not meet the generally applicable requirement

that at least 40 percent of the equalized assessed value of the taxable property within

a political subdivision be used by tourism-related retailers. As is the case with the

villages of Sister Bay and Ephraim, the premier resort area tax may not take effect

in Stockholm unless it is approved in a referendum of the electors.