Home Page: Frequently Asked Questions
|
August 09
FREQUENTLY ASKED QUESTIONS
1. Q. What is the room tax and why was it implemented?
A. In 2006, the Door County Strategic Marketing Coalition commissioned a study to determine alternatives and options to offset the decline in tourism in Door County. The consultant’s report recommended a substantial increase in the funding for marketing
Effective
Town of
Village of
Town of
Town of
Town of Liberty Grove
Town of
Town of
Village of
Effective
Effective
Effective October 15, 2008 Town of Brussels
Effective November 19, 2008 Town of Clay Banks
Effective January 1, 2009 Village of Forestville
Effective January 1, 2009 Town of Forestville
Effective January 1, 2009 Town of Sturgeon Bay
Effective January 1, 2009 City of Sturgeon Bay
Effective January 1, 2009 Town of Union
2. Q. What do I charge room tax on?
A. The criteria for a permit and regular reporting is offering rental, not actual rental. Any exchange of cash is considered by the State of Wisconsin and the Tourism Zone Commission to be a lodging rental, even if rented only to friends and relatives. Room tax must be collected on the lodging portion of any stay less than 30 consecutive days including all amenities, such as breakfast, that are part of the regular rate.
3. Q. What is the function of the Tourism Zone Commission?
A. The Tourism Zone Commission is a government entity created by the intergovernmental agreement (State Statutes Section §66.0615) and must comply with the laws of the State affecting public entities including open meetings and open records. The Commission is responsible for issuing the lodging permits, collecting the room tax, preparing and delivering all the required reports, contracting with a tourism entity (Door County Visitor Bureau) for the purpose of marketing the destination, approving the marketing plan and reviewing the performance measurements. A purpose of the Commission is to insure that the room tax funds collected increase tourism in member municipalities as measured by increased stays in lodging establishments.
4. Q. Where do my room tax dollars go?
A. All of the room tax dollars are paid to the Tourism Zone Commission. The intergovernmental agreement that was part of the adoption of the tax split the total tax into 70% and 30% shares. The 30% share is distributed to Door County municipalities. The 70% share is to be spent on marketing Door County as a tourism destination.
5. Q. What will the 70% share be spent on?
A. The Commission has contracted with the Door County Visitor Bureau to develop and undertake a variety of marketing efforts designed to increase the number of overnight stays in lodging establishments in member municipalities. A maximum of 4% of the annual room tax collected in the Tourism Zone may be spent on administrative expenses of the Commission. The 4% comes out of the 70% the Commission retains to market the member municipalities. All the room tax revenue the Commission retains (less up to 4%) will be spent on marketing.
6. Q. What guarantees do I get that my room tax collection data will be confidential?
A. First of all, the data we are asking you to provide in terms of occupancy rates and lodging sales is essential to know if the marketing efforts of the Door County Visitor Bureau are working. We will keep your information confidential. State Statute Section §66.0615(3) mandates the confidentiality of all room tax information and provides for civil forfeitures if confidentiality is broken. The Commission Intergovernmental Agreement also provides the following mandates:
All Room Tax returns, schedules, exhibits, writings or audit reports relating to such returns, on file with the Commission and the municipality are deemed confidential, except the Commission or municipality may divulge their contents to the following, and no others:
a. The person or his or her legal representative who filed the return.
b. Officers, employees or agents of the municipal treasurer and the Commission.
c. Other persons for the use in the discharge of duties imposed by law, or in the discharge of the duties of their office (unless otherwise prohibited by law) or by order of a court.
The Commission and its committees discuss individual lodging properties by name only in Closed Session. Lodging property individual collections and statistics are not included in the Door County Tourism Zone Commission reports. All information is summarized by municipality.
7. Q. When are the taxes due to the Tourism Zone Commission?
A. Room tax is due at the end of the month following the month it was collected (e.g., July report and tax is due August 31).
8. Q. What if the customer is a non-profit entity?
A. The non-profit entity should already be providing you with their tax exempt number to be
exempt from tax, which includes room tax. There is a place on the monthly form to report this exemption.
9. Q. Do you need to file a monthly report for the months you are closed?
A. On your application, you will have indicated the months you are available for rent. These are the only months that you will need to file a report. If you do not have any rentals in a month you indicated you would be open, a report is still required with zeros.
10. Q. Are we able to file our reports online?
A. Yes. Go to www.doorcountytourismzone.com and hit “Submit” on the menu. Log in, using the assigned user name and password given to you with your permit number (if you cannot locate your access information please call or e-mail the Commission office). Through this system, your payments can be made by ACH directly from your bank account on the payment date you state.
11. Q. What happens if I do not pay it, or do not pay it on time?
A. As with sales tax, there are penalties and interest due if the room tax is not paid in a timely manner, and the Compliance Committee of the Commission will pursue enforcement. Delinquent returns are subject to a $25 late filing fee. Twenty-five percent (25%) of the room tax due or five thousand dollars ($5,000.00) whichever is less, of the tax imposed, is established and due and owing if the room tax is not paid within thirty (30) days after the due date of the return. Interest is 1% per month and other fees (e.g., legal fees incurred) may be assessed. In addition, a $35 fee will be charged for checks returned as NSF.
12. Q. Do I also have to be a member of the
A. The collection of the room tax is mandatory, but membership in the Door County Visitor Bureau is voluntary. Go to www.doorcounty.com to learn more about DCVB membership.
13. Q. How does this really operate?
A. The Commission has retained the services of the Kerber Rose CPA firm to collect all the permit information, payments, and track compliance. The accounting firm will be handling all of the records to assist in maintaining the confidentiality of the reports. The Commission has its financial transactions audited at the end of each fiscal year. The Commission meets regularly to review general collection information and performance reports from the Door County Visitor Bureau. The Commission reports regularly to its member municipalities and lodging establishments on the activities undertaken, funds expended, and the status of its goals. With the exception of any closed session on any given agenda, Commission meetings are open to the public; look online to find out the date and meeting place of upcoming meetings.
14. Q. Whom do I contact if I have a question or complaint?
A. You can contact the Commission at P.O. Box. 55, Sister Bay, WI 54234, phone: 920-854-6200 or by e-mail at DCTourismZoneCommission@gmail.com. Our physical address is 10568 Country Walk Lane, Sister Bay, WI 54234.
15. Q. Where can I find out more information?
A. Go to our website at www.doorcountytourismzone.com or call our offices with any questions.