SB 338

This bill allows the town of Minocqua in Oneida County, the city of Sturgeon

Bay, and the city of Tomahawk to become premier resort areas notwithstanding the

fact that they do 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 (the 40 percent requirement).

“Tourism-related retailers" is defined to be certain retailers who are classified in the

Standard Industrial Classification Manual

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.

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.