[HISTORY: Adopted by the Town Board of the Town of Fulton 9-10-2019 by Ord. No. 2019-13. Amendments noted where applicable.]
Editor's Note: This ordinance was adopted as Ch. 280, but was renumbered to maintain the organization of the Code.
Except as defined below, in this chapter capitalized terms shall have the definitions ascribed to them in § 66.0615 of the Wisconsin Statutes.
- The Edgerton Area Chamber of Commerce Inc., a Wisconsin nonstock corporation, and its successors.
- Hotelkeepers, motel operators, lodging marketplaces, owners of short-term rentals, and other persons furnishing accommodations that are available to the public, which are located in the Town and are obligated to pay Room Taxes under this chapter.
- ROOM TAX
- A tax on the privilege of furnishing, at retail, rooms or lodging to transients by the Operators pursuant to the Room Tax Act.
- ROOM TAX ACT
- Section 6.0615 of the Wisconsin Statutes, as amended from time to time.
- ROOM TAX COMMISSION
- The Edgerton Room Tax Commission created by the Municipalities within the Tourism Zone pursuant to the Room Tax Commission Agreement in order to coordinate tourism promotion and tourism development within the Tourism Zone.
- ROOM TAX COMMISSION AGREEMENT
- The Room Tax Commission Agreement, dated October 1, 2019, entered into by and among the Municipalities and the Room Tax Commission, as amended from time to time.
- TOURISM ZONE
- That geographic area encompassing the City of Edgerton, Wisconsin; the Town of Albion, Wisconsin; and the Town of Fulton, Wisconsin that hereafter becomes a party to the Room Tax Commission Agreement.
- Any person residing for a continuous period of less than 29 days in a hotel, motel or other furnished accommodations available to the public.
Tax Imposed. Pursuant to the Room Tax Act, there is hereby imposed a 5% Room Tax on the privilege of furnishing, at retail, rooms or lodging to transients by the Operators. Operators shall remit all Room Taxes to the Town Clerk/Treasurer in accordance with the requirements of this chapter and the Room Tax Act. Such tax shall not be subject to the selective sales tax imposed by Wisconsin Statutes § 77.52(2)(a)1, and may not be imposed upon sales to the federal government and persons listed under Wisconsin Statutes § 77.54(9a). The Room Tax shall be allocated as follows:
Seventy percent (70%) shall be imposed and allocated toward the support of the Room Tax Commission, to be used for the promotion of the Tourism Zone as a tourism destination.
Thirty percent (30%) ("Municipal Room Tax") shall be imposed and retained by the Town of Fulton to be used as determined by the Town Board.
Taxation Effective Date. The effective date of the Room Tax shall be January 1, 2020.
Room Tax Payment Frequency. Room Tax shall be paid by the Operator on a monthly basis. It shall be paid by the end of the month following the month in which it was collected to the Town Clerk/Treasurer.
Room Tax Return.
The Room Tax Return filed with the room tax payment by the Operator shall contain the following information: name of the business, physical address, postal address, municipality located within, name of the designated person filling out the return, month and year the return is for, total available rental units during the month (number of rental units in the facility multiplied by the days in the month or days they were open), number of rooms or units rented, total lodging sales for the month, room tax to be paid (which should equal total lodging sales multiplied by the 5% Room Tax) and the signature of the person filling out this return, attesting to the accuracy. This information will allow the municipality or Commission to judge the accuracy of the return and, with all returns in total, to judge the effectiveness of the tourism promotion.
Every Operator required to file such monthly report shall, with the first report, elect to file an annual report based on either the calendar year or its fiscal year. Such annual report shall be filed within 90 days of the close of each such calendar or fiscal year. The annual return shall summarize the monthly reports, shall reconcile and adjust for errors in the monthly reports, and shall contain certain such additional information as the Town requires. Such annual reports shall be signed by a representative of the Operator or its duly authorized agent, but need not be verified by oath. The Town may, for good cause, extend the time of filing any report, but in no event shall such extension be longer than one month after the due date.
Priority of Payment. In the event any Operator fails to remit the entire Room Tax amounts due under this chapter, the Town directs that the amounts actually received by the Town shall be applied in the following priority order:
Confidentiality of Reports. 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 pursuant to Wisconsin Statutes § 66.0615(3) except they may divulge their contents to the following and no others:
The person who filed the return.
Officers, employees or agents of the Town Clerk/Treasurer and the Commission.
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 Room Tax Commission shall contract with a "tourism entity," or qualified "nonprofit organization," as those terms are defined in the Room Tax Act (collectively, "Tourism Entity"), for purposes of providing staff, support services and assistance to promote the Tourism Zone to visitors as more fully set forth in an agreement between the Room Tax Commission and the Tourism Entity.
This chapter shall be administered by the Town Clerk/Treasurer.
Permit Required . Every Operator under this chapter shall annually file with the Town Clerk/Treasurer an application for a permit for each place of business that is required to collect Room Tax hereunder before providing lodging for transients. Every application for a permit shall be made upon a form prescribed by the Town and shall pay an annual fee of $35 and set forth the name under which the applicant transacts or intends to transact business, the location of place of business, and such other information as the Town requires. The application shall be signed by the owner if a sole proprietor and, if not a sole proprietor, by the person authorized to act on behalf of such owner. At the time of making an application, the applicant shall pay the Town a fee of $35 for each permit. A permit issued hereunder is nontransferable.
The Town shall enforce this chapter in accordance with the Room Tax Act.
Penalty for Violations. In addition to the forfeiture set forth in Subsection A(3) herein, any Operator in violation of the terms of this chapter, by failing to obtain and maintain a permit when such permit is required, shall be subject to a forfeiture not to exceed $200 for each violation. Each room or unit separately rented or offered for rent, and each day of such rental or offer for rental of such unit, shall be a separate violation. In addition, injunctive relief is hereby authorized to discontinue any violation of this chapter. Any Operator deemed to have violated any of the provisions of this chapter shall be obligated to pay the costs of prosecution, in addition to actual attorney fees expended in the course of said enforcement. The Town may revoke or suspend any permit issued hereunder for failure to comply with the provisions hereof.
Liability for Tax on Sale or Transfer of Business. If any Operator liable for any amount of tax under this chapter sells or transfers all or substantially all of its interest in its hotel, motel or other lodging accommodation, its successors or assigns shall withhold sufficient amounts from the purchase price to pay any amount of Room Tax liability due through the sale or transfer date until the Operator produces a receipt that its liability has been paid in full or a certificate stating that no Room Tax amount is due. If a successor Operator subject to the tax imposed by this chapter fails to withhold such amount from the purchase price as required, such successor Operator shall become personally liable for payment of the Room Tax amount it is required to withhold.
Delinquent Room Tax. Delinquent Room Tax returns shall be subject to a $25 late filing fee. The tax imposed by this chapter shall become delinquent if not paid by the due date of the return. A forfeiture of 25% of the room tax due or $5,000 whichever is less, of the tax imposed is hereby established and due and owing in the event that the room tax is not paid within 30 days after the due date of the return. In addition to this forfeiture, all unpaid taxes under this chapter shall bear interest at the rate of 1% per month from the due date of the return until received and deposited by the Town Clerk/Treasurer.
Inspection and Audit of Financial Records. Whenever the Town Clerk/Treasurer has probable cause to believe that the correct amount of room tax has not been assessed or that the tax return is not correct, or that the tax has not been paid, the Town Clerk/Treasurer is authorized to examine and inspect the books, records, memoranda and property of any person in order to verify the tax liability of the person or another person to determine the amount of tax owed. Any Operator who fails to comply with a request to inspect and audit the Operator's financial records shall be subject to a forfeiture in an amount equal to 5% of amount of tax due in the best judgment of the Town Clerk/Treasurer. The Operator shall pay the amount of tax determined due by the Town Clerk/Treasurer plus interest at the rate of 1% per month on the unpaid balance. If any past due tax, interest or penalties are due at the beginning of a calendar year, a new annual room tax lodging permit will not be issued unless satisfactory financial arrangements have been made with the Town Clerk/Treasurer to satisfy payment.