Authorizing the town of Minocqua in Oneida County, the city of Sturgeon Bay, and the city of Tomahawk to become premier resort areas. (FE)

Currently, a number of cities and villages are authorized to enact an ordinance or adopt a resolution to become a premier resort area notwithstanding the fact that none of these cities or villages meet the 40 percent requirement. As is the case with the villages of Sister Bay, Ephraim, and Stockholm and the city of Rhinelander, the premier resort area tax may not take effect in Minocqua, Sturgeon Bay, or Tomahawk unless it is approved in a referendum of the electors.

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; exposition center facilities; fire fighting equipment; and police vehicles. In the case of Rhinelander, however, the city may use the proceeds of the tax only to pay for transportation-related infrastructure expenses.

Under this bill, the town of Minocqua, the city of Sturgeon Bay, and the city of Tomahawk may use the proceeds of the tax only to pay for transportation-related infrastructure expenses, other than recreational-related expenses. Also under the bill, neither the town nor the cities may spend less on transportation-related expenditures in the current year than the average amount they spent on such expenses in the five most recent years.