January 15, 2015
Dear WH&LA Lodging Member:
The following are just a few developments at the state level, with an inundation of new bills and hearings happening this week.
Room Tax
- Thank you to many of you who took the time to contact your legislators and the co-sponsors of AB 655 & SB 516 enabling the Raiding of Room Tax revenue designated for tourism promotion and tourism development. While there is significant support from the League of Municipalities and their members, it is critical that we keep our voices strong to legislators letting them know how this can decimate local tourism funding! So far neither bill has been scheduled for a hearing, but if they are, we will need your help quickly to stop them. WH&LA has created a simple Overview & Talking Points document on these bills which may come in handy.
- Yesterday, the state Department of Revenue (DOR) released their second resource relating to Room Tax - entitled Wisconsin Room Tax Report. This very succinctly outlines the required components of the new report municipalities imposing room tax must remit to the DOR by May of 2017 (covering 2016 fiscal year) AND the proof of grandfathered statues for those currently retaining more than 30% of total room tax revenue for their own municipal purposes
- A new bill was introduced late Wednesday in the Assembly by Rep. Rohrkaste - AB 714 on Changes Impacting Tourism Entities, with it's companion bill in the Senate introduced today (SB 578, by Senator Roth). This bill is being pursued by WACVB and Wisconsin Manufacturers & Commerce (WMC - with a membership section for chambers of commerce) to provide some corrections and clarifications relating to the definition and requirements for "Tourism Entities" in the Room Tax Statute. With the surprise modifications to the Room Tax Reform package in the State Budget last spring from a last-minute Senate Amendment, the final language passed was a little confusing. This bill basically says that CVBs & chambers that were established by January 2015 (changed from 1992) and spend more than half of their revenue on tourism promotion & tourism development are considered a "Tourism Entity" and can receive the tourism revenue portion direct. It also expands this to enable non-profit chambers that have been created by the same date which have spent all of the room tax funding given to them on tourism promotion & tourism development (as required by law) to be considered a "Tourism Entity" and also be eligible to receive the tourism revenue direct - without requiring tourism commission oversight which the current language requires. Finally, this bill also lessens the requirement for a tourism zone to have a lodging representative from each community by providing an option that they can instead have at least four lodging representatives total. WH&LA does not oppose these changes, and in fact supports the concepts pursued, but has expressed concerns about opening up this language so soon after the Room Tax Reform was passed last summer, as we do not want to see others make unwanted modifications while the bill has a door open.
Residential Dwelling Rentals
- Amendment 1 to AB 583 on Residential Dwelling Rentals passed 8-0 in the Assembly Committee, which makes it available for scheduling for a floor vote in the Assembly. The same Amendment 1 but this time to SB 446 was introduced in the Senate Committee this week; however, the Executive Session enabling a committee vote has not yet been scheduled.
- As mentioned in our last Capitol Insider, the amendments remove the bill's proposed exemption from state licensing, inspections, and regulations for what is loosely defined as "residential dwellings." This leaves all lodging properties renting rooms to the public on an even ground relating to state licensing, inspections, regulations, state & local tax responsibilities, etc.
- The bill sponsor, however, has said that he wants to organize meetings with the lodging industry through WH&LA after the elections in November to find what could be reasonable modifications to parts of the state regulations and definitions for lodging, to address numerous issues such as the demands for occasional non-traditional lodging from major area events, etc.
Creative Economy Grant Program
- SB 483 creates a new grant program, funded with $500,000 every biennium from the State Tourism Marketing Budget, for economic development and creative economy development grants requiring a local funding match.
- SB 483 passed out of the Senate Agriculture, Small Business, and Tourism Committee this week on a 8-1 vote, sending it on for potential scheduling in the state Senate.
- WH&LA supports this bill; however, only if new revenue is added to the state tourism budget so that it does not simply earmark existing limited marketing funding.
WH&LA Action Day in Madison Feb. 24
Lodging owners and managers are encouraged to participate in our 2016 WH&LA Action Day set for Wednesday, Feb. 24, at the Hilton Monona Terrace in Madison. You will hear legislator speakers, receive an issues update, enjoy networking over lunch, and we will schedule brief meetings for you at the Capitol with your legislators or their key staff - all from 10:15 am - 3:30 pm! Register online here or download the registration form.
Finally... for today...
There are many other bills WH&LA is monitoring and weighing in on, many of which will be discussed next week at our Winter Legislative/Tourism Committee Meeting in Green Bay. Any lodging member wishing to sign up for this committee and attend the meeting can register for the meetings and/or the Issues Luncheon here, however the registration deadline can only be extended to Monday morning at 9:00 am.
|