SB 389

This bill allows the city of Prescott and the village of Pepin to become premier

resort areas notwithstanding the fact that neither municipality 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

(the 40 percent requirement). “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.

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 Prescott or Pepin 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.