Dear WH&LA Lodging Member:
Starting with a clarification on a bill summary from yesterday, please note the information added in
red
below which should have been included for clarity:
Elimination of Motorboat "Spotter" Requirement
(SB 69/AB 100)
For members providing boats on a lake, this bill removes the requirement for motorboats towing an individual on water skis or other device to have a second person on board to be a "spotter"
provided the motorboat is equipped with a mirror that provides the operator with a wide field of vision to the rear
.
An amendment was added that a municipality with a lake with a statutorily authorized water safety patrol unit that performs a minimum of 1500 hours of enforcement/search/rescue on that lake may still require a spotter. Both houses approved the bill as amended, so it goes to the Governor to sign next.
New Personal Property Tax Limited Exemption
On September 25 the WH&LA Capitol Insider reported on the new limited reduction in Personal Property Taxes on businesses in municipalities imposing this tax (a large number). This was part of the final State Budget and created a new exemption for "machinery" non-manufacturing businesses. "Machinery" is defined as "a structure or assemblage of parts that transmits force, motion, or energy from one part to another in a predetermined way by electrical, mechanical, or chemical means, and which may not include a building." It was anticipated that the state Dept. of Revenue (DOR) would be issuing a guidance with clarifications, however the DOR has recently stated that it will not be issuing a separate guidance to local assessors on this.
While this leaves more flexibility to local assessors, the DOR did say that anything previously reported under Schedule C: Machinery, Tools & Patterns would now be exempt. The following suggestions were issued by the Coalition to Repeal Wisconsin's Personal Property Tax following counsel from the lead association's accountant and legal counsel, however it is suggested that WH&LA members work with their own accountant or attorney to interpret for your specific needs:
- Statements of Personal Property in municipalities with such a requirement, will be due March 1, 2018 and will no longer include schedules for "Machinery, Tools & Patterns" or "Computers and Related Equipment" (a different earlier exemption)
- In the past, some businesses classified items under either Schedule C (Machinery...) or Schedule D (Furniture & Fixtures) without major analysis, as the tax ramifications were the same. It may be wise to start compiling and reviewing your own personal property/fixed asset list now. A closer analysis can determine if your lodging property should re-classify machinery that may have been previously reported as Furniture & Fixtures, using the definition of Machinery noted in bold above.
- If your analysis re-classifies items to fit the definition of machinery now, it would not need to be included in your Statement of Personal Property.
- By law, local assessors have the right to view personal property based on the Statement completed, so be prepared to justify any items previously reported as taxable that would now be considered exempt under "machinery".
Regulatory Changes at the State Level
The WH&LA is providing input to state agencies and other engaged organizations on the following regulations and agency policy changes that are currently under consideration:
- CO Detector Requirement proposed revisions to the last changes in 2010
- New DSPS Rules for Camping Units, covering newly created rules for rented overnight structures that are less than 400 sq. feet that are located in campgrounds
- Proposed Changes to the DNR's WPDES Permits for Swimming Pool or Water Attraction's Water Discharge - for pools that discharge pool water to storm sewer systems. (Note: we could use 2 member volunteers with pool water discharge expertise to review second-round changes expected in January. Please contact Trisha at pugal@wisconsinlodging.org with your name, property, title, and contact info by January 2)
As always, we appreciate your membership and your support.
