SB 646

This bill expands the applicability of the room tax, makes a number of

substantive and technical changes to the local room tax in the areas of collections,

audits, and the exchange of information between local governments and the

Department of Revenue, establishes a common tax base between the sales tax and

the room tax, and authorizes a municipality (city, village, or town) to impose a

forfeiture of up to $500 per day on a marketplace provider (a person who facilitates

a retail sale by a seller by listing or advertising, to the extent that the marketplace

provider facilitates the sale or furnishing of rooms, lodging or other accommodations

to transients) that does not timely file a required room tax return to the municipality

or pay the required tax. The maximum forfeiture that may be imposed for any year

is $45,000, and a forfeiture that is imposed may be appealed to the municipality

which imposed it. The municipality may waive the forfeiture.

Currently, the room tax may be imposed by a municipality or a local exposition

district on the privilege of furnishing rooms or lodging to transients by hotelkeepers,

motel operators, lodging marketplaces, and other persons who furnish such

accommodations. Under the bill, the room tax may be imposed by a municipality or

district on the sales price from selling or furnishing rooms or lodging to transients

by hotelkeepers, motel operators, and others.

2019 Wisconsin Act 10

in effect

requires lodging marketplaces to collect and remit sales taxes from third parties.

Under current law, to enforce the collection of a room tax imposed by a

municipality or district, if such entities have probable cause to believe that the

correct amount of room tax has not been assessed or that a room tax return is

incorrect, they may inspect and audit the financial records of any person subject to

the room tax. Under the bill, to perform such room tax enforcement, a municipality

or district may inspect and audit tax-related records of a person subject to the room

tax. In addition, the bill repeals the probable cause component.

The technical changes made by the bill include the following:

1. Requires counties to provide DOR with the complete county tax roll.

2. Applies to the room tax a number of definitions that currently apply to the

general sales and use tax.

3. Clarifies that persons who are subject to the room tax must file a room tax

return in the manner and form, and within the time, prescribed by a municipality.

The municipality may require such persons to provide certain specific information

with the return.

4. Authorizes a municipality or district performing an audit related to the room

tax to conduct joint audits with other such entities and to exchange audit information

with DOR and any municipality that took part in the joint audit.