Just Released DOR Local Room Tax Fact Sheet!
November 6, 2015
Dear WH&LA Lodging, CVB and Chamber Members:
The state Department of Revenue (DOR) has completed their own Local Room Tax Fact Sheet, which will be published sometime today (Friday) at their website and through their communication vehicles.
Why this is important is that the DOR is the agency responsible for collecting the new Annual Room Tax Reports from municipalities beginning in May of 2017. In order to have the annual report submitted in 2017, municipalities will need to be ready to collect the proper information for the calendar year of 2016, which is coming up quickly. That in turn means that local tourism commissions and tourism entities will need to be prepared to provide the data the municipality will need.
In the DOR Fact Sheet on page two is a section outlining the "New Reporting Requirements in 2017", which includes the requirement that those municipalities that, under the nicknamed "grandfather clause" which allows municipalities that kept more than 30% of room tax back in May of 1994 to continue to retain that percentage (keeping in mind the new dollar caps beginning also in 2017), they must remit copies of the ordinance from 1994 along with the most recently completed financial report in 1994 demonstrating that they retained more than 30% of room tax for their own purposes. In other words, those claiming to be eligible to keep more than the 30% cap imposed in 1994, must remit according documentation.
Also included is a section on page two called "Common Questions." Key points here include:
- The annual reporting form will be electronic, and once remitted will be available to the public at the DOR website for anyone to review
- Regarding the component that all tourism promotion and tourism development expenditures over $1,000 must be reported, they have clarified that payroll expenses may be aggregated, so all individual staff salaries are not required to be listed separately.
This Fact Sheet will be added to WH&LA's website information at www.WisconsinLodging.org/roomtax starting today.
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