| |
| |
March 5, 2018
Dear WH&LA Lodging Member:
Today we want to share with you not only a brief overview of what remains on the slate of legislative action for the state Senate before adjournment, but also some professional interpretations on existing and recent laws, relating to Condo Rentals and Personal Property Taxes for Businesses.
It appears that the state Senate plans to hold the last part of their biennial (2-year) session on March 20-22, with a focus on bills already passed in the state Assembly before they adjourned a few short weeks ago. Unless the Senate convinces the Assembly to come back for a special session - which would take some important issues - the Senate's choices are to pass the same version of what the Assembly passed, or to pass a revised version in the hopes that the Assembly might come back and match their changes, or to not take a vote on the issue which kills the bill for this session.
Some of the bills that have passed the Assembly and are waiting for consideration by the state Senate, that may be of interest are:
- AB 904/SB 748 Carbon Monoxide Detectors in Commercial Residential Buildings (including lodging properties). This bill, with the same two amendments passed in the Assembly (one requested by WH&LA) just passed out of the Senate Committee on March 1, and will likely be on the schedule for a Senate vote.
- AB 544/ SB 451 Sale/Rental of Soda Water Equipment. This bill prohibits DATCP from regulating the terms of sale or rental of equipment for soda water beverages, which enables properties with soda dispensing equipment to negotiate pricing and terms directly with vendors without restriction. An amendment was passed in Senate Committee and the Assembly that also prohibits DATCP from regulating the provision of coin-operated soda water vending machines by wholesalers to retailers. As the Senate committee passed the amended version unanimously, this also is likely to be scheduled for a Senate vote.
- AB 187/ SB 137 Barn Rentals Regulations. This bill, enabling historic barns built before 1965 and previously used for farming to be rented out for events with certain restrictions, was introduced a year ago, however, after the June Senate hearing with numerous objections, including some from the WH&LA, the bill authors in both chambers came back with a Substitute Amendment 1 that imposed more significant safety requirements and specified required licensing for the serving of alcoholic beverages (with the enhanced requirements supported by the WH&LA). Approved as amended by the Assembly, and also unanimously by the Senate Committee, it is likely this will be scheduled for a Senate vote too.
- AB 748/ SB 634 Employment Law Standardization Act. This bill joins the others in that it has been amended in both the Assembly before passage and in the Senate Committee, however this has remained more controversial with businesses on one side and municipalities on the other. Basically it prohibits municipalities from enacting ordinances relating to employment law that are more strict or restrictive than state law. Of most concern to the lodging industry would be laws that have passed in other parts of the country severely restricting the ability to schedule worker hours any less than 2 weeks out (or other variations of this) without paying penalties. Another component relates to overtime regulations. A component relating to Employment Discrimination was removed in the passed amendment. While the amended version passed the Assembly and Senate Committee, it is difficult to predict whether the Senate will take this up, or amend it further, meaning the Assembly would have to re-convene if a further amended version could pass.
- AB 433/ SB 311 Later Hours for Wineries. This bill would extend the hours that wineries could stay open from 9:00 pm to midnight, but would also allow municipalities to set more restrictive hours if they wish. An amendment passed that would not allow municipalities to restrict hours more than current law, and also adds a requirement that a private property owner that rents out their building must have a liquor license/permit to serve alcohol beverages, along with the elimination of the four-liter limit on sales of distilled spirits for off-premise consumption for Class B retail licensees. As the pre-amended version passed in Senate committee, the Senate would have to take up the passed Assembly bill AB 433 instead if they schedule it for a vote.
AB 811/ SB 679 $6.8 Million in New Funding to Attract & Retain Workers in Wisconsin. This bill would add $6.8 million in funding for WEDC to develop and implement a marketing campaign to attract and retain workers for Wisconsin, with part earmarked for targeting veterans and expanding DWD's job center capabilities. This passed the Assembly and Senate Committee and was on track to be approved, but following some recent negative media on a recent campaign in Illinois, we will watch to see if this will be scheduled for a Senate vote.
CLARIFICATION FROM DATCP ON WHETHER INDIVIDUAL LICENSES ARE REQUIRED FOR CONDO UNIT OWNERS RENTING TO THE PUBLIC
Following the receipt of questions from some of our condo property members, the WH&LA asked DATCP for clarification on if or when an individual condo unit owner needs to become licensed to rent out their unit.
If a condo unit is part of a condo association and this association is licensed for the collective property for rentals to the public through their association/contracted management company, the units are automatically included in this license, HOWEVER, if the unit owner rents out their unit on their own through a platform such as Airbnb - not through their association or management company - unless the condo association specifically authorizes in their by-laws that they are responsible for all rentals regardless of who initiates it, the unit owner must obtain a "tourist rooming house" classification license through their local public health department or the state (DATCP).
As a consideration, if a unit owner is conducting their own rentals independently, the association would have no control over who it is rented to and if there would be damage to the unit or common areas, and thus they may prefer not to accept the added responsibility, and instead would require their owners to get their own license, if the association allows independent rentals.
In our Feb. 7 WH&LA Capitol Insider, we had mentioned a webinar the next day provided by the Coalition to Repeal Wisconsin's Personal Property Tax, and given by CliftonLarsonAllen LLP, Audit, Tax, and Consulting experts. This is available online here.
WH&LA conferred with one of the expert speakers (Brian Baumgart, from CLA) afterwards to get further clarifications that relate more directly to the lodging industry, such as which of the equipment used in lodging properties and restaurants would not be eligible for exemption under the new exemption for "Machinery, Tools, and Patterns". The following interpretations were provided by the speaker:
- The items that a property previously listed under Schedule C for Machinery, Tools, and Patterns should most easily be accepted as now exempt
- It is important for this first year to include what is most likely eligible for the exemption, as it will be more difficult in a second year to all of a sudden claim an exemption when you did not in the first year.
- It was his interpretation that the following should be eligible to list under Schedule C and be eligible for an exemption: restaurant ovens and stoves; Refrigeration units; Dishwashing machines; Washers and dryers (laundry machines) for both restaurants and lodging properties.
This interpretation is not intended to replace advice from your own CPA, but is intended to provide a generalized interpretation for initiating your conversation and planning with your CPA.
As always, your interest and support is appreciated.
Best,
Trisha
Trisha A. Pugal, CAE
President, CEO
Wisconsin Hotel & Lodging Association
262-782-2851
|
|
| |
|