Committee of the Whole Meeting — Other

LG Committee of the Whole; August 3, 2026 Presentation: Room Tax Information Dave Sekeres COMMUNITY & INDUSTRY LEADERSHIP • Board of Directors, Wisconsin Hotel & Lodging Association (WHLA) & Committees • 2022 Wisconsin Innkeeper of the Year • Executive Committee, WCEDA • Chair, City of Delavan Tourism Commission • Board of Directors, Visit Lake Geneva — Past Chair • COO Lake Lawn Resort • Chair, Gateway Tech Hospitality Advisory Group • Board of Directors, Delavan Chamber — Past Chair • Board Chair, Delavan DDTech School Board • Various other boards and commissions • Resident, City of Lake Geneva Thank you for your time and the opportunity to present tonight. % Summary of How Room Tax Works in Lake Geneva, WI The state statute, the city ordinances, the Tourism Commission, and the contract with VISIT Lake Geneva Wis. Stat. § 66.0615 Ord. Ch. 70, Art. III Prepared by Dave Sekeres · Lake Geneva, Wisconsin · August 2026 The VLG Contract VISUALIZE THE S Y S T E M The Map, the Vehicle, the Engine — and the Driver THE MAP Wis. Stat. § 66.0615 State law draws the boundaries — the 8% ceiling, the 70/30 split, and the lanes for every dollar. THE VEHICLE Ordinance Ch. 70 The City drives the law: permits, the 8% levy, monthly returns, audits, and penalties. THE ENGINE Tourism Commission The Commission powers the 70% — it contracts with the entity, awards grants, and follows statue on use. THE DRIVER Tourism Entity Visit Lake Geneva Drives the destination marketing — Min 51% of every room-tax dollar powers the tourism. Four icons to remember W H Y T H I S B R I E F I N G M A T T E R S Tourism Is Lake Geneva’s Economy $1.05B Total economic impact of tourism, Walworth County (2025) ▲ +5.6% vs. 2024 $807M Direct visitor spending in Walworth County (2025) ▲ +5.9% vs. 2024 $83.2M State & local taxes generated by visitors (2025) ▲ +5.8% vs. 2024 $2,472,851 Gross room tax collected by the City in 2025 — up 7.8% vs. 2024 30% City general fund — ~$741,855 in 2025 51% VISIT Lake Geneva ~$1,261,204, by contract 19% Commission grants, Riveria, & projects ~$469,792 Every dollar of room tax starts the same way: a visitor checks into a room. ACTUAL DATA T H E S T A T E L A W Anatomy of Wis. Stat. § 66.0615 (1) Definitions — “commission,” “tourism entity,” “tourism promotion & development,” (1m)(a) The Tax — up to 8% of the sales price of rooms or lodging sold to transients (1m)(b)–(c) The Commission — creation, 4–6 members, duties, and the mandatory tourism-entity contract (1m)(d)–(dm) The Split — at least 70% to tourism promotion & development; retention grandfathering (1r) Marketplace Providers — OTA’s (Online Travel Agents) must collect tax and remit it to the City quarterly (2)–(3) Enforcement & Privacy — audits, forfeitures, interest — and strict confidentiality of returns (4) Accountability — every municipality reports collections & spending to the DOR by May 1 § 6 6 . 0 6 1 5 ( 1 m ) ( a ) Who Pays — and the Hard 8% Ceiling 8% Statutory maximum since May 13, 1994. Lake Geneva charges the full 8% (raised from 5% in 2022). Hotels & motels every room furnished to a “transient” guest, by any hotelkeeper or operator Short-term rentals whole-home and room rentals — treated exactly like hotels under the statute Marketplace providers Airbnb, Vrbo, Expedia & similar platforms must collect and remit for their hosts § (1r) Any public lodging seller “irrespective of whether membership is required for use of the accommodations” NOT taxable: sales to the federal government and exempt persons under § 77.54(9a); stays that are not “transient.” § 6 6 . 0 6 1 5 ( 1 m ) ( d ) The 70/30 Rule: Most of It Must Fund Tourism ≥ 70% MUST be spent on tourism promotion & tourism development ≤ 30% MAY be kept by the City for any purpose Where the 70% goes It must be forwarded to the Tourism Commission (or a tourism entity) — the Council does not spend it directly. The Commission then contracts with a tourism entity to do the marketing work. The “grandfather” exception § (dm) A municipality already taxing in May 1994 may keep its historic share — since FY2021, capped at the same dollar amount it retained in fiscal year 2010. New adopters are locked at 30%. Total room tax is not general revenue. By state law, it is a dedicated tourism-reinvestment stream with a smaller municipal share. T H E S T A T E L A W — W I S . S T A T . § 6 6 . 0 6 1 5 ( 1 ) ( f m ) Defining Tourism Promotion & Development EXACT STATUTORY TEXT — § 66.0615(1)(fm) “Tourism promotion and tourism development” means any of the following that are significantly used by transient tourists and reasonably likely to generate paid overnight stays at more than one establishment on which a tax under sub. (1m) (a) may be imposed, that are owned by different persons and located within a municipality in which a tax under this section is in effect; T H E T H R E E P E R M I T T E D U S E S 1. MARKETING PROJECTS “Marketing projects, including advertising media buys, creation and distribution of printed or electronic promotional tourist materials, or efforts to recruit conventions, sporting events, or motorcoach groups.” 2. TOURIST INFORMATION “Transient tourist informational services.” 3. TANGIBLE DEVELOPMENT “Tangible municipal development, including a convention center.” T H E S T A T E L A W Where the 70% May Legally Go — § 66.0615(1)(fm) 1 Marketing Projects Advertising media buys, printed & electronic promotional materials, recruiting conventions, sporting events and motorcoach groups. 2 Tourist Information Transient tourist informational services — the visitor center, wayfinding, and services that turn day-trippers into overnight guests. 3 Tangible Municipal Development Municipal convention & event facilities, sports complexes, and other tourism-oriented improvements municipal venues for public visitor use. THE TEST Every expenditure must answer YES to all three: ✓ Significantly used by transient tourists? ✓ Reasonably likely to generate paid overnight stays at multiple properties within the city? ✓ A marketing project, tourist information, or tangible development? NEVER: Room tax may not be used to construct or develop a lodging facility — and the 70% may never quietly backfill general city expenses. T H E S T A T E L A W The Tourism Commission the Statute Requires WHO SITS ON IT — § 66.0615(1m)(c) 4–6 members for a single-municipality commission 1 lodging seat at least one member must represent the Wisconsin hotel & motel industry Mayor appoints the principal elected official appoints; the Council confirms by majority vote 1-year terms members serve at the pleasure of the appointing official; reappointment allowed WHAT IT MUST DO 1 Contract with the existing tourism entity (or another organization if none exists) 2 Meet regularly (at least quarterly); elect a chair, vice- chair and secretary from its members 3 Spend room tax revenue only on tourism promotion & tourism development 4 Report annually to the municipality on how every dollar was spent from the balance received 5 Report delinquencies or inaccurate lodging reporting to the municipality HARD LIMIT The Commission may never use room tax to construct or develop a lodging facility — room tax dollars cannot build private competitors. ★ WHY IT EXISTS The Commission is the Engine: an independent body identifying the best use, of the funds, within the laws. T H E C I T Y ’ S O R D I N A N C E S Lake Geneva’s Room Tax Ordinance — Ch. 70, Art. III SIXTEEN SECTIONS, ONE SYSTEM — §§ 70- 55 TO 70- 70 70-55 Tourism Commission 70-56 Definitions 70-57 Tax levied — the rate 70-58 Monthly returns 70-59 Annual return 70-60 Lodging permit 70-61 Revocation & suspension 70-62 Unpaid taxes 70-63 Treasurer determines tax 70-64 Forfeiture: inspection 70-65 Estimated tax 70-66 Interest — 1%/month 70-67 Delinquent taxes 70-68 Recordkeeping 70-69 Confidentiality 70-70 Forfeiture: no permit THE RATE, § 70- 57 5% 8% Council voted in late 2021 to move from 5% to 8% — the state maximum — joining Delavan City & Town as Walworth County’s top rate. 2% Of the 100% whole Collection allowance retained by lodging operators under the City’s ordinance — for acting as the tax collector. T H E C I T Y ’ S O R D I N A N C E S The Tourism Commission — § 70-55 Alderperson City Council seat #1 Alderperson City Council seat #2 Citizen A resident of the City of Lake Geneva Hotel / Motel Industry Represents Wisconsin’s lodging industry Downtown BID Member From the Business Improvement District City Business Owner Owns a business inside city limits HOW IT RUNS Appointed — By the Mayor, confirmed by the Council — one-year terms Meets — At least quarterly — quorum is four members Staffed — City Administrator serves as liaison; minutes filed with the City Clerk EX -OFFICIO, NON -VOTING — AT THE TABLE The Mayor of Lake Geneva The City Comptroller finance oversight Executive Director of the contracted tourism entity (VISIT Lake Geneva) T H E P A R T N E R VISIT Lake Geneva — the City’s Tourism Entity 1944 Lake Geneva Chamber of Commerce founded 1980 Lake Geneva Area Convention & Visitors Bureau created 2016 Chamber + CVB merge to form VISIT Lake Geneva TODAY The region’s primary destination marketing organization (DMO) WHO THEY ARE ● Independent 501(c)(6) nonprofit — 500+ partner businesses ● Serves Lake Geneva & several other communities ● Full-time staff + lakefront Visitor Information Center ● Although it’s the Tourism Entity for the city, by contract, it’s not city run and it is funded by partner dues and Tourism Entity Room Tax Contracts WHAT § 66.0615 DEMANDS OF THE ENTITY ✓ Spend at least 51% of revenues on tourism promotion & development ✓ Seat at least one lodging owner/operator on its governing body per entity contract ✓ Report annually to the City on purpose the money served FOUR SIGNATURE EVENTS, BY CONTRACT: Winterfest Restaurant Week Concerts in the Park Electric Christmas Parade TOURISM ENTITIY The Contract: Commission ⇄ VISIT Lake Geneva LG TOURISM COMMISSION 6 voting members Receives the statutory 70% and must contract with a tourism entity for promotion services (§ 70-55). VISIT LAKE GENEVA Private 501(c)(6) nonprofit · DMO Delivers destination marketing staff and services — and must spend min 51% on TP&TD. 5-YR CONTRACT Approved Dec 2023 · executed by the Commission chair 51% of the City’s total room tax flows to VLG — 72.86% of the Commission’s 70% share Min 51% of that funding must be spent on tourism promotion & tourism development events Winterfest · Restaurant Week · Concerts in the Park · Electric Christmas Parade report annual accounting of every purpose for which room tax was spent The useful equivalence: 70% × 72.86% = 51.0% — to VISIT Lake Geneva. LODGING ROOM TAX One Month of Lodging, Property by Property $ Short-term rentals are taxed exactly like hotels. Hypothetical 31-day example month. $604,260 $122,760 $659,835 $219,410 $351,780 $627,750 $0K $200K $400K $600K Hotel F — 190 rm Hotel E — 60 rm Hotel D — 180 rm Hotel C — 75 rm Hotel B — 85 rm Hotel A — 150 rm One month of hotel room revenue Room revenue SHORT -TERM RENTALS Rental Home A $400 ADR · 35% · $4,340 Rental Home B $500 ADR · 25% · $3,875 Rental Home C $300 ADR · 50% · $4,650 All three: $12,865 room revenue THE MONTH IN TOTAL $2,598,660 revenue example ILLUSTRATIVE EXAMPLE F O L L O W T H E D O L L A R From Guest Folio to City Hall $ $2,598,660 Total room revenue — 6 hotels + 3 rentals, one 31-day month Example $207,893 Room tax collected from guests at 8% — the state maximum − $4,158 Lodging operators retain 2% as their collection allowance $203,735 Net room tax remitted to the City of Lake Geneva WHAT THE CITY RECEIVES 98% of every tax dollar collected $203,735 Occupancy: hotels 55.3% · rentals 35.5% · overall 55.1% — at 60%, collections rise ≈ 8.9%. Hypothetical example month · ILLUSTRATIVE EXAMPLE T H E M O N E Y Where the Net $203,735 Goes NET ROOM TAX TO CITY $203,735 $ 30% · CITY GENERAL FUND $61,121 Available for any lawful city expense — police, streets, parks, snow removal. 70% · TOURISM COMMISSION $142,614 Locked by statute to tourism promotion & tourism development. VISIT LAKE GENEVA $103,912 72.86% of the 70%, by contract COMMISSION KEEPS $38,702 grants & projects THE MARKETING FLOOR $52,995 — 51% of the entity’s operating budget is the statutory minimum that must reach actual marketing. ILLUSTRATIVE EXAMPLE T H E M O N E Y Full Circle: The Marketing Dollar Comes Home $1 → $1.60 returned to the City in room tax alone $ $103,912 Tourism-entity funding from the Commission $52,995 Marketing spend — the 51% statutory floor $7.84M Visitor spending — $148 per $1 of advertising $2.13M Lodging’s share — 27.1% of visitor spending $170,042 New room tax collected — 98% remitted to City Travel Wisconsin: every $1 of tourism advertising ≈ $7 in state & local taxes. Conservative Approach — counts only the 51% floor and room tax. Travel Wisconsin/Longwoods; Tourism Economics 2025. ILLUSTRATIVE MODEL T H E M O N E Y The $50,000 Grant Question What must a $50,000 Tourism grant generate before the Commission sees its money back? $50,000 grant paid out by the Tourism Commission $625,000 new room revenue needed ($50,000 ÷ 8%) 3,125 room nights required at a $200 ADR AGAINST LAKE GENEVA’S ~852- ROOM INVENTORY 3.7 full sellout nights 4.9 nights at 75% occupancy 7.3 nights at 50% occupancy THE 70/30 CATCH $35,000 is all the Commission recovers — 70¢ on the dollar. $15,000 (30¢ /dollar) stays in the city’s general fund. −$15,000 gap TWO WAYS TO SCORE A GRANT Scenario A — make the Commission whole: $71,429 in tax · $892,857 revenue · 4,464 nights · break-even. Scenario B — flat return, 70/30 split: $50,000 in tax · $625,000 revenue · 3,125 nights · short $15,000. Assumes 8% room tax, $200 ADR, ~852 rooms citywide. SCENARIO ANALYSIS T H E W H O L E S Y S T E M A Tax That Travels in a Circle GUEST checks in 8% TAX on the folio CITY 2% of whole 100% stays with lodging 30 / 70 general fund / Commission 51% to VISIT Lake Geneva MARKETING 51% floor VISITORS new overnight stays …and every new stay starts the cycle again — $1.60 back to the City per $1 invested The statute is the map. The ordinance is the vehicle. The commission is the engine. Visit Lake Geneva is the driver. State Economists: Tourism Offsets $692 / Per Household in Taxes T H E R E C A P Remember the Key Points 1 State law controls it. Wis. Stat. § 66.0615 governs the room tax — the City’s ordinance (Ch. 70, Art. III) is the vehicle that carries it out. 2 70% is committed to tourism. The Commission receives 70% of room tax revenue; 30% stays with the City’s general fund. 3 Spending is defined. Only marketing, tourist information, and tangible development that generate overnight stays — § 66.0615(1)(fm). 4 The commission is the engine. The statute requires a tourism commission to oversee the forwarded $’s to recipients & Visit LG as the driver of tourism marketing. 5 Reinvestment comes back. Every $1 invested returns $1.60 to the City — and every new overnight stay starts the cycle again. 6 Visitors pay it — not locals. The tax falls on lodging stays, typically visitors. It is not designed to be a tax on residents or paid by them. 7 The goal is growth. Reinvesting in tourism is meant to grow the amount collected each year. 8 Growth lifts the City’s 30%. As collections rise, the City’s 30% general-fund share grows right along with them. THE TEST Every expenditure must answer YES to all three: ✓ Significantly used by transient tourists? ✓ Reasonably likely to generate paid overnight stays at multiple properties within the city? ✓ A marketing project, tourist information, or tangible development? Thank You Q U E S T I O N S & D I S C U S S I O N Sources: Wis. Stat. § 66.0615 · City of Lake Geneva Municipal Code Ch. 70, Art. III · WHLA Wisconsin Room Tax Series (2022) · Travel Wisconsin / Longwoods International · Tourism Economics, Economic Impact of Visitors in Wisconsin 2025 Economic Impact of Visitors to Wisconsin 2025 Published June 2026 CONTENTS Introduction Key Findings Results in Context Visits and Direct Visitor Spending Economic Impact Methodology Economic Impact Appendix Visitors are integral to Wisconsin’s economy, generating significant financial benefits for residents and local businesses. Visitor activity also produces substantial tax revenue which supports government services. Credible measurements of the visitor economy are designed to inform policy decisions that foster the sector’s development. To quantify the significance of Wisconsin’s visitor economy, Tourism Economics developed a comprehensive analysis of direct visitor spending and its total economic impact on businesses, employment, personal income, and taxes. At a high level, our approach includes the following stages: • Compilation of visitor statistics • Compilation of industry data • Compilation of government data • Analysis of direct visitor spending by category • Economic impact modeling Introduction KEY FINDINGS Key Findings Visitors Generate Significant Economic Impact In 2025, 117.9 million visits to Wisconsin generated $27.0 billion in total economic impact, increases of 3.1% and 4.4%, respectively. $27.0B TOTAL ECONOMIC IMPACT 117.9M VISITS TO WISCONSIN 183,594 TOTAL JOBS SUPPORTED $1.7B STATE AND LOCAL TAXES $17.0B DIRECT VISITOR SPENDING Results in Context $17.0B DIRECT VISITOR SPENDING Visitors spent $46.7 million per day in Wisconsin, on average. 183,594 JOBS The visitor economy supported 1-in-21 jobs in Wisconsin in 2025. $1.7B STATE & LOCAL TAXES State and local taxes generated by the visitor economy offset resident taxes by $692 per household. The visitor economy is an economic pillar in Wisconsin: Visitor Economy Trends Key indicators suggest that visitor activity grew in 2025, with broad -based gains across visitor-related industries despite continued pressure on household budgets from several years of high inflation and a slowing labor market. According to STR, hotel room revenue in Wisconsin grew 4.5% in 2025, its strongest growth since 2022 and well ahead of the national increase of 0.4%. State bed tax collections rose at a similar pace, further signaling solid growth in Wisconsin’s visitor economy. After slight declines in both 2023 and 2024, room demand rebounded 3.4% year over year in 2025, more than offsetting the losses from the prior two years. Sales tax collections in key visitor-centric industries further suggested resiliency in the visitor economy in 2025. Entertainment and recreation sales tax collections increased 6.2% in 2025, up from 3.8% growth in 2024, while restaurant sales tax collections increased to 2.6% growth from 2.2% the previous year. Lodging Performance Indicators year-over-year percent change Source: STR Taxable Sales in Tourism-Related Industries year-over-year percent change Source: Wisconsin DOR VISITS & DIRECT VISITOR SPENDING Visitor spending reached $17.0 billion in 2025, a 4.8% increase over the prior year. Lodging—including short-term rentals—made up the largest share of that total, at $4.6 billion, or 27.1% of all visitor spending. Food and beverage purchases accounted for 26.6% of spending, representing the second - largest category. Wisconsin Visits millions Wisconsin saw a record- breaking 117.9 million visits in 2025, a healthy increase over the prior year (+3.1%). Overnight visits led gains, growing 3.5% year-over- year. Source: Tourism Economics, Longwoods International Source: Tourism Economics, Longwoods International Note: Lodging includes all accommodation types, and transportation includes both ground and air transportation. Wisconsin welcomed 117.9 million visits that contributed $17.0 billion in direct visitor spending in 2025. Visits Wisconsin Direct Visitor Spending $ billions Direct Visitor Spending LODGING $4.6B 27.1% FOOD & BEVERAGE $4.5B 26.6% RETAIL $3.2B 19.0% TRANSPORT $2.3B 13.6% REC/ENT $2.3B 13.8% Direct visitor spending climbed 4.8% to $17.0 billion in 2025, supported by both solid demand growth and higher prices. Recreation again led spending growth in 2025, rising 6.4% year-over-year, followed closely by food and beverage spending. A relatively modest uptick in average daily room rates (ADR) limited lodging spending growth to a still healthy 4.2%, while lower gasoline prices kept transportation spending gains relatively tempered at 3.6%. Visits expanded 3.1% in 2025, driven by gains in both day and overnight visitation. International arrivals to Wisconsin fell in 2025, with a particularly steep decline in Canadian visitation weighing on the segment, consistent with national trends. Wisconsin Direct Visitor Spending $ billions Source: Tourism Economics Note: Lodging includes all accommodation types, and transportation includes both ground and air transportation. Wisconsin Visits, by Segment millions Insert Chart Visit and Spending Trends Source: Tourism Economics Wisconsin Direct Spending Share, by Segment Share of direct visitor spending Source: Tourism Economics *2025 international spending is considered preliminary 2021 2022 2023 2024 2025 2025 Growth Total direct visitor spending $12.9 $15.0 $15.7 $16.3 $17.0 4.8% Lodging $3.5 $4.1 $4.3 $4.4 $4.6 4.2% Food & beverage $3.4 $3.9 $4.1 $4.3 $4.5 6.0% Retail $2.6 $2.9 $3.0 $3.1 $3.2 3.8% Rec/Entertainment $1.6 $2.0 $2.1 $2.2 $2.3 6.4% Transportation $1.7 $2.1 $2.2 $2.2 $2.3 3.6% Wisconsin Direct Spending, by Segment $ billions, $ per person 2021 2022 2023 2024 2025 Total direct visitor spending $12.9 $15.0 $15.7 $16.3 $17.0 Day $4.3 $4.9 $5.3 $5.6 $5.8 Overnight $8.5 $10.0 $10.4 $10.7 $11.2 Per visit direct spending $126 $135 $139 $142 $144 Day $70 $75 $79 $82 $83 Overnight $213 $221 $227 $232 $236 2021 2022 2023 2024 2025 Total visits 102.3 111.1 113.0 114.4 117.9 Day 62.3 65.7 67.1 68.5 70.5 Overnight 39.9 45.4 45.9 45.9 47.5 Total visits 102.3 111.1 113.0 114.4 117.9 Business 9.7 10.5 10.5 10.3 9.9 Leisure 92.5 100.6 102.5 104.1 108.0 Total visits 102.3 111.1 113.0 114.4 117.9 Domestic 102.2 110.9 112.6 114.0 117.6 International 0.1 0.2 0.3 0.4 0.3 Direct visitor spending during the key summer months surpassed $5.4 billion in 2025, accounting for nearly one-third of total annual spending. Spending increased year-over-year in every quarter, with growth broadly distributed across the year. The consistency across quarters indicates resilient travel demand throughout the year. Wisconsin Quarterly Direct Visitor Spending $ billions Source: Tourism Economics Direct Visitor Spending Seasonality Wisconsin Quarterly Direct Visitor Spending $ billions Source: Tourism Economics Q1 Q2 Q3 Q4 2021 $2.1 $3.1 $4.5 $3.2 2022 $2.7 $3.8 $4.9 $3.5 2023 $3.1 $4.0 $5.0 $3.6 2024 $3.1 $4.2 $5.2 $3.8 2025 $3.3 $4.4 $5.4 $4.0 % Change 5.8% 4.7% 4.1% 5.0% ECONOMIC IMPACT METHODOLOGY The development of visitor economy impact modeling begins with a comprehensive demand side analysis. Visitor survey data provides estimates on the volume of visitors by type and their spending in specific industries (e.g. lodging, restaurants, retail, recreation and entertainment, transportation). These estimates are strengthened through an analysis of industry-specific data sets on the lodging industry, aviation, and sectoral-level business sales. Government data, including taxes by type, as well as employment and personal income by industry, are used to supplement and confirm demand- side direct visitor spending calculations. This provides a detailed profile of direct visitor spending by industry, which is then connected to a local input-output (I-O) economic impact model constructed within the IMPLAN platform. This uses government (Bureau of Economic Analysis and Census) data to trace the flow of visitor through the local economy and its effects on businesses, households, and government. The model quantifies three levels of impact: 1. Direct impacts: Visitor spending creates direct economic value within a defined set of sectors. This supports a proportion of spending, jobs, wages, and taxes within each sector. 2. Indirect impacts: Businesses providing direct services to visitors purchase goods and services, generating additional impacts called indirect impacts or supply-chain effects. 3. Induced impacts: Additional business activity is generated as employees spend incomes locally that are earned due to visitor activity. This is called the induced impact or income effect. The model calculates these three levels of impact—direct, indirect, and induced—for the following metrics: • Spending • Wages • Employment • Federal Taxes • State Taxes • Local Taxes 13 Economic Impact Methodology DIRECT INDIRECT INDUCED TOTAL IMPACT Direct visitor purchases in retail, lodging, transportation, entertainment, and dining Travel businesses purchase goods and services creating supply chain effects Employees spend wages generated by visitor activity in the local economy SALES JOBS TAXES INCOME Economic Impact Model ECONOMIC IMPACT Source: Tourism Economics Business Sales by Industry (2025) $ millionsBusiness Sales Impacts Visitors spent $17.0 billion in Wisconsin in 2025. These direct impacts generated an additional $10.0 billion through supply chain (indirect) and income (induced) effects. As a result, the total economic impact of visitors reached $27.0 billion in 2025, 4.4% ahead of the prior year. Visitor spending generated a total economic impact of $27.0 billion. Direct Visitor Spending (Direct Sales) Indirect Sales = Total Economic Impact $27.0B Induced Sales $5.0B$17.0B $5.0B+ + Direct Business Sales Indirect Business Sales Induced Business Sales Total Business Sales Total, all industries $17,032 $4,978 $4,950 $26,960 Retail Trade $4,543 $80 $366 $4,990 Finance, Insurance and Real Estate $1,255 $1,156 $1,548 $3,959 Food & Beverage $3,222 $283 $344 $3,849 Lodging $3,649 $1 $1 $3,651 Recreation and Entertainment $2,115 $102 $66 $2,282 Business Services $70 $1,359 $419 $1,848 Gasoline Stations $1,085 $4 $32 $1,121 Education and Health Care $12 $941 $953 Other Transport $314 $307 $131 $752 Air Transport $614 $7 $10 $631 Construction and Utilities $445 $148 $593 Personal Services $164 $154 $260 $579 Manufacturing $360 $177 $537 Communications $318 $190 $507 Wholesale Trade $227 $222 $449 Government $132 $70 $202 Agriculture, Fishing, Mining $31 $25 $56 GDP by Industry (2025) $ millions Direct GDP Indirect GDP = Total GDP $12.6B Induced GDP $2.5B$7.4B $2.7B+ + GDP (Value Added Impacts) Wisconsin’s visitor economy GDP increased to $12.6 billion in 2025. This represented 2.7% of Wisconsin’s entire economy. GDP removes the value of all imported (from other states and internationally) goods and services. Source: Tourism Economics Direct GDP Indirect GDP Induced GDP Total GDP Total, all industries $7,372 $2,473 $2,724 $12,569 Finance, Insurance and Real Estate $858 $529 $846 $2,233 Food & Beverage $1,843 $148 $189 $2,180 Lodging $2,118 $1 $1 $2,120 Recreation and Entertainment $1,215 $60 $37 $1,312 Business Services $28 $788 $243 $1,059 Retail Trade $661 $55 $233 $949 Education and Health Care $6 $562 $568 Other Transport $190 $149 $66 $404 Personal Services $113 $99 $157 $370 Air Transport $264 $3 $4 $272 Wholesale Trade $133 $126 $259 Communications $135 $101 $236 Construction and Utilities $173 $59 $232 Manufacturing $98 $42 $140 Government $78 $32 $110 Gasoline Stations $82 $2 $16 $100 Agriculture, Fishing, Mining $14 $12 $25 Employment by Industry (2025) jobs The visitor economy supported 1-in-21 jobs in Wisconsin, including nearly 52,000 jobs in the food and beverage industry. Direct Jobs Indirect Jobs = Total Jobs 183.6K Induced Jobs 25.3K130.4K 28.0K+ + Employment Impacts Visitor activity sustained 130,359 direct jobs in 2025, with an additional 53,235 jobs supported from the indirect and induced impacts of visitor activity. Total employment impacts tallied 183,594 in 2025, a 0.9% increase over the previous year. This translated to 1-in-21 jobs in the state. Source: Tourism Economics =+ + Direct Jobs Indirect Jobs Induced Jobs Total Jobs Total, all industries 130,359 25,265 27,970 183,594 Food & Beverage 44,004 3,406 4,314 51,724 Lodging 33,960 17 20 33,997 Recreation and Entertainment 25,959 1,301 888 28,148 Retail Trade 14,290 593 3,621 18,505 Business Services 477 8,115 2,563 11,156 Finance, Insurance and Real Estate 1,821 4,048 3,215 9,085 Other Transport 3,122 2,064 906 6,091 Personal Services 3,691 1,437 2,629 7,757 Education and Health Care 131 7,208 7,339 Air Transport 1,538 15 21 1,575 Gasoline Stations 1,496 29 250 1,776 Government 685 271 956 Construction and Utilities 850 303 1,153 Wholesale Trade 682 747 1,429 Communications 713 396 1,109 Manufacturing 925 408 1,333 Agriculture, Fishing, Mining 252 210 462 Note: Totals may not sum due to rounding. Employment directly supported by visitor activity increased 1.0% in 2025, reaching 130,359 jobs. Visitor-supported employment was a significant part of several industries in Wisconsin—nearly all lodging employment, 30% of recreation employment, and 19% of food and beverage jobs were supported by visitor spending in 2025. Overall, direct tourism jobs accounted for about 4.2% of all jobs in Wisconsin in 2025. Visitor-Supported Employment in Wisconsin thousands of jobs Source: Tourism Economics Direct Employment Source: Tourism Economics Tourism Employment Intensity share of total industry employment Source: Tourism Economics Personal Income by Industry (2025) $ millions Visitor activity generated $4.2 billion in direct personal income in 2025. Including indirect and induced impacts, employees received $7.3 billion in personal income. Total visitor-generated income in Wisconsin increased 3.5% in 2025. Direct Personal Income Indirect Personal Income = Total Personal Income $7.3B Induced Personal Income $1.5B$4.2B $1.5B + + Personal Income Impacts Notes: Totals may not sum due to rounding. In previous reports, 'Personal Income' was referred to as 'Labor Income.' This change was made to align with the naming convention used by the Bureau of Economic Analysis. Direct Personal Income Indirect Personal Income Induced Personal Income Total Personal Income Total, all industries $4,205 $1,522 $1,537 $7,264 Food & Beverage $1,142 $108 $124 $1,374 Lodging $1,350 $0 $1 $1,350 Business Services $26 $604 $189 $819 Recreation and Entertainment $709 $33 $23 $765 Retail Trade $432 $25 $132 $590 Education and Health Care $6 $508 $514 Finance, Insurance and Real Estate $67 $205 $184 $456 Other Transport $177 $121 $48 $347 Personal Services $137 $84 $122 $344 Wholesale Trade $67 $68 $135 Air Transport $121 $1 $2 $124 Communications $63 $43 $106 Construction and Utilities $74 $28 $102 Manufacturing $62 $27 $90 Government $60 $23 $83 Gasoline Stations $44 $1 $8 $54 Agriculture, Fishing, Mining $6 $7 $13 Visitor activity generated $3.2 billion in government revenues in 2025. State and local taxes alone measured just over $1.7 billion in 2025. Each household in Wisconsin would need to be taxed an additional $692 to replace the visitor-generated taxes received by state and local governments in 2025. Tax Impacts (2025) $ millions Source: Tourism Economics Tax Impacts Tax Impacts (2025) $ millions Source: Tourism Economics 2021 2022 2023 2024 2025 2025 Growth Total Tax Revenues $2,601.2 $2,853.8 $3,004.0 $3,090.8 $3,198.1 3.5% Federal Taxes $1,212.9 $1,335.9 $1,398.2 $1,433.0 $1,481.3 3.4% Personal Income $330.1 $382.3 $446.8 $455.6 $470.9 3.4% Corporate $100.0 $113.6 $126.1 $131.0 $134.3 2.5% Indirect Business $115.5 $124.9 $113.0 $116.0 $121.2 4.4% Social Insurance $667.3 $715.0 $712.4 $730.4 $755.0 3.4% State and Local Taxes $1,388.2 $1,518.0 $1,605.8 $1,657.8 $1,716.8 3.6% Sales $475.9 $527.8 $548.8 $566.2 $589.0 4.0% Bed Tax $118.6 $150.7 $159.7 $164.9 $171.9 4.3% Personal Income $147.8 $160.8 $165.1 $169.2 $174.9 3.4% Corporate $82.0 $88.8 $93.3 $95.7 $99.7 4.2% Social Insurance $7.5 $7.6 $7.3 $7.4 $7.7 3.4% Excise and Fees $63.2 $69.3 $73.2 $75.2 $77.5 3.0% Property $493.4 $513.0 $558.4 $579.2 $596.1 2.9% 2021 2022 2023 2024 2025 2025 Growth State & Local Revenues $1,388.2 $1,518.0 $1,605.8 $1,657.8 $1,716.8 3.6% State Taxes $688.8 $757.9 $786.6 $809.6 $841.1 3.9% Sales $439.9 $487.8 $507.3 $523.3 $544.4 4.0% Personal Income $147.8 $160.8 $165.1 $169.2 $174.9 3.4% Corporate $82.0 $88.8 $93.3 $95.7 $99.7 4.2% Social Insurance $7.5 $7.6 $7.3 $7.4 $7.7 3.4% Excise and Fees $11.8 $12.9 $13.6 $14.0 $14.5 3.0% Local Taxes $699.4 $760.0 $819.2 $848.2 $875.7 3.2% Sales $36.0 $40.0 $41.6 $42.9 $44.6 4.0% Bed Tax $118.6 $150.7 $159.7 $164.9 $171.9 4.3% Excise and Fees $51.4 $56.4 $59.5 $61.2 $63.0 3.0% Property $493.4 $513.0 $558.4 $579.2 $596.1 2.9% APPENDIX Appendix Data Sources SPENDING DEFINITIONSECONOMIC IMPACT DEFINITIONS Glossary • Longwoods International: Consumer survey data, including spending and visitor profile characteristics • STR: Hotel performance data, including room demand and revenue • Wisconsin Department of Revenue: Lodging and sales tax receipts, by industry • BEA/BLS: Employment and wage data, by industry • US Census: Business sales and employment by industry, and seasonal second homes inventory • Tourism Economics: International arrivals data for visitors to Wisconsin Methodology Overview Measuring the visitor economy begins with a comprehensive demand side analysis. A visit is defined as any journey involving travel of more than 50 miles from home. The measure used for visitor counts is a ‘person trip’ - one trip taken by one visitor. The study area is defined as the state of Wisconsin. Visitor survey data provide estimates on the volume of visitors by type and their spending in specific categories (e.g. lodging, restaurants, retail, recreation and entertainment, transportation). These estimates are strengthened through an analysis of industry-specific data sets on the lodging industry, aviation, and sectoral-level business sales. Government data, including taxes by type as well as employment and personal income by industry are used to supplement and confirm demand-side visitor spending calculations. The primary source of the employment and wage data is the Regional Economic Information System (REIS), maintained by the Bureau of Economic Analysis (BEA). This is more comprehensive than Bureau of Labor Statistics (BLS QCEW) data because sole-proprietors do not require unemployment insurance and are not counted in the QCEW data. The complete set of data inputs is provided below. LODGING All accommodation businesses, including hotels, B&Bs, campgrounds, and short-term rentals. This includes food, entertainment, and other services provided by these establishments. FOOD & BEVERAGE Includes all visitor spending on food & beverages, including at restaurants, bars, grocery stores and other food providers. RECREATION Includes visitors spending within the arts, entertainment and recreation sector. RETAIL Includes visitor spending in all retail sub-sectors within the local economy, excluding grocery stores. LOCAL TRANSPORT Ride share, taxis, limos, trains, rental cars, buses, and gasoline purchases. AIR TRANSPORT Where applicable, the local share of air transportation spending. SECOND HOMES Where applicable, spending associated with seasonal second homes for recreational use as defined by the Census Bureau. DIRECT IMPACT Impacts (business sales, jobs, income, and taxes) related to businesses where visitors spend dollars (e.g. recreation, transportation, lodging). INDIRECT IMPACT Impacts created from the purchase of goods and services as inputs (e.g. food wholesalers, utilities, business services) into production by the directly affected sectors (i.e. business-to-business purchases). INDUCED IMPACT Impacts created from spending in the local economy by employees whose wages are generated either directly or indirectly by visitor activity. EMPLOYMENT Employment is measured by the Bureau of Economic Analysis (BEA) definition, and captures full-time and part-time jobs, which includes salary and wage employees and proprietors. PERSONAL INCOME Income (wages, salaries, proprietor income and benefits) supported by visitor spending. VALUE ADDED (GDP) Business sales net of intermediate (supply chain) purchases. LOCAL TAXES City and County taxes generated by visitor spending. Includes any local sales, income, bed, usage fees, licenses and other revenue streams to local governmental authorities. STATE TAXES State tax revenues generated by visitor spending. Includes sales, income, corporate, usage fees and other assessments of state governments. Methodology Notes Percent changes may not align exactly with reported values due to rounding. We acknowledge the critical role Wisconsin’s Tribes play in enriching Wisconsin’s tourism offering and bringing in travelers to Wisconsin. The survey data used in this analysis encompasses all visits to Wisconsin. However, because Tribal tourism data is private, this analysis is unable to confirm the precise magnitude of these activities. As a result, the total economic impact of Tribal tourism may not be wholly reflected in this report. For more information: admin@tourismeconomics.com. This study was conducted by the Tourism Economics group within Oxford Economics. Tourism Economics combines an understanding of traveler dynamics with rigorous economics to answer the most important questions facing destinations, investors, and strategic planners. By combining quantitative methods with industry knowledge, Tourism Economics designs custom market strategies, destination recovery plans, forecasting models, policy analysis, and economic impact studies. Oxford Economics was founded in 1981 as a commercial venture with Oxford University’s business college to provide economic forecasting and modeling to UK companies and financial institutions expanding abroad. Since then, we have become one of the world’s foremost independent global advisory firms, providing reports, forecasts and analytical tools on 200 countries, 100 industrial sectors and over 3,000 cities. Our best-of-class global economic and industry models and analytical tools give us an unparalleled ability to forecast external market trends and assess their economic, social and business impact. Oxford Economics is an adviser to corporate, financial and government decision- makers and thought leaders. Our worldwide client base comprises over 2,000 international organizations, including leading multinational companies and financial institutions; key government bodies and trade associations; and top universities, consultancies, and think tanks. Oxford Economics employs more than 600 full-time staff, including 350+ professional economists and analysts. Headquartered in Oxford, England, with regional centers in London, New York, and Singapore, Oxford Economics has offices across the globe in Belfast, Chicago, Dubai, Miami, Milan, Paris, Philadelphia, San Francisco, and Washington DC. About the Research Team HOW CAN ROOM TAX BE SPENT? Series ROOM TAX Wisconsin Provided as a service of the Wisconsin Hotel & Lodging Association. This is not intended to replace qualified legal counsel. For Wisconsin Room Tax resources, visit www.WisconsinLodging.org/roomtax. Contact: Bill Elliott, CAE (President & CEO) | 262-782-2851 ext. 10 | belliott@wisconsinlodging.org | August 2020 Up to 30% can go to municipality, unless municipality has been grandfathered in at a different rate. At least 70% must be spent on Tourism Promotion and Tourism Development. What expenditures are eligible? (Answer “yes” to all three) Is it reasonably likely to generate paid overnight stays in multiple lodging properties? • If municipality only has one property, is it likely to generate stays there? • If you aren’t sure, ask a lodging property operator! Will it be significantly used by transient tourists? Will it be for a Marketing Project, Tourist Information, or Tangible Municipal Development? • Ad buys/marketing of tourist materials • Tourist services creating overnight guests • Funding a convention center Make sure it complies — public reports are required to be filed by May 1 every year! Wisconsin Room Tax StateStatute 66.0615As of June 30, 2021 66.0615  Room tax; forfeitures.(1) In this section:(a)“Commission" means an entity created by one municipalityor by 2 or more municipalities in a zone,to coordinate tourism promotion and tourism development for the zone.(am)“District" has the meaning given in s.229.41(4m).(b)“Hotel" has the meaning given in s.77.52 (2)(a) 1.(bt)“Marketplace provider” has the meaning givenin s.77.51 (7i), to the extent that the marketplaceprovider facilitates the sale or furnishing of rooms, lodging, or other accommodations to transientsunder sub.(1m) (a).(bu)“Marketplace seller” has the meaning given ins.77.51 (7j).(c)“Motel" has the meaning given in s.77.52 (2)(a) 1.(d)“Municipality" means any city, village or town.(de)“Occupant” means a person who rents a short-termrental through a marketplace provider.(df)“Owner” means the person who owns the residentialdwelling that has been rented.(di)“Residential dwelling” means any building, structure,or part of the building or structure, that is usedor intended to be used as a home, residence, or sleeping place by one person or by 2 or more personsmaintaining a common household, to the exclusion of all others.(dk)“Short-term rental” means a residential dwellingthat is offered for rent for a fee and for fewer than30 consecutive days.(dm)“Sponsoring municipality" means a city, villageor town that creates a district either separately or incombination with another city, village, town or county.(e)“Tourism" means travel for recreational, businessor educational purposes.(f)“Tourism entity" means a nonprofit organizationthat came into existence before January 1, 2015,spends at least 51 percent of its revenues on tourism promotion and tourism development, andprovides destination marketing staff and services for the tourism industry in a municipality, exceptthat if no such organization exists, a municipality may contract with one of the following entities:1.A nonprofit organization that spends at least 51percent of its revenues on tourism promotion andtourism development, and provides destination marketing staff and services for the tourism industryin a municipality.2.A nonprofit organization that was incorporatedbefore January 1, 2015, spends 100 percent of the roomtax revenue it receives from a municipality on tourism promotion and tourism development, andprovides destination marketing staff and services for the tourism industry in a municipality.(fm)“Tourism promotion and tourism development" meansany of the following that are significantlyused by transient tourists and reasonably likely to generate paid overnight stays at more than oneestablishment on which a tax under sub.(1m) (a)maybe imposed, that are owned by differentpersons and located within a municipality in which a tax under this section is in effect; or, if themunicipality has only one such establishment, reasonably likely to generate paid overnight stays inthat establishment:1.Marketing projects, including advertising mediabuys, creation and distribution of printed or electronicpromotional tourist materials, or efforts to recruit conventions, sporting events, or motorcoachgroups.2.Transient tourist informational services.3.Tangible municipal development, including a conventioncenter.(g)“Transient" has the meaning given in s.77.52(2) (a) 1. (h)“Zone" means an area made up of 2 or more municipalities that, those municipalities agree, is a singledestination as perceived by the traveling public.(1m) (a)The governing body of a municipality may enactan ordinance, and a district, under par.(e), mayadopta resolution, imposing a tax on the sales price from selling or furnishing, at retail, except sales forresale, rooms or lodging to transients by hotelkeepers, motel operators, marketplace providers,owners of short-term rentals, and other persons or retailers selling or furnishing accommodations thatare available to the public, irrespective of whether membership is required for use of theaccommodations. A tax imposed under this paragraph may be collected from the consumer or user,but may not be imposed on sales to the federal government and persons listed under s.77.54 (9a). Atax imposed under this paragraph by a municipality shall be paid to the municipality and, with regardto any tax revenue that may not be retained by the municipality, shall be forwarded by themunicipality to a tourism entity or a commission if one is created under par.(c), as provided in par.(d). Except as provided in par.(am), a tax imposedunder this paragraph by a municipality may notexceed 8 percent of the sales price. Except as provided in par.(am), if a tax greater than 8 percent ofthe sales price under this paragraph is in effect on May 13, 1994, the municipality imposing the taxshall reduce the tax to 8 percent, effective on June 1, 1994.(am)A municipality that imposes a room tax under par.(a)is not subject to the limit on the maximumamount of tax that may be imposed under that paragraph if any of the following apply:1.The municipality is located in a county with apopulation of at least 380,000 and a convention center isbeing constructed or renovated within that county.2.The municipality intends to use at least 60 percentof the revenue collected from its room tax, of anyroom tax that is greater than 7 percent, to fund all or part of the construction or renovation of aconvention center that is located in a county with a population of at least 380,000.3.The municipality is located in a county with apopulation of less than 380,000 and that county is notadjacent to a county with a population of at least 380,000, and the municipality is constructing aconvention center or making improvements to an existing convention center.4.The municipality has any long-term debt outstandingwith which it financed any part of theconstruction or renovation of a convention center.(b)1.If a single municipality imposes a room tax underpar.(a), the municipality may create a commissionunder par.(c). The commission shall contract withanother organization to perform the functions of atourism entity if no tourism entity exists in that municipality.2.If 2 or more municipalities in a zone impose aroom tax under par.(a), the municipalities shallenterinto a contract under s.66.0301to create a commissionunder par.(c). If no tourism entity exists inany of the municipalities in the zone that have formed a commission, the commission shall contractwith another organization in the zone to perform the functions of the tourism entity. Eachmunicipality in a single zone that imposes a room tax shall levy the same percentage of tax. If themunicipalities are unable to agree on the percentage of tax for the zone, the commission shall set thepercentage.3.A commission shall monitor the collection of roomtaxes from each municipality in a zone that has aroom tax.4.A commission shall contract with one tourism entityfrom the municipalities in the zone to obtain staff,support services and assistance in developing and implementing programs to promote the zone tovisitors.(c)1.If a commission is created by a single municipality,the commission shall consist of 4 to 6 members.One of the commission members shall represent the Wisconsin hotel and motel industry. Membersshall be appointed under subd.3.2.a.If the commission is created by more than one municipalityin a zone, the commission shall consist of 3members from each municipality in which annual tax collections exceed $1,000,000, 2 members from each municipality in which annual tax collections exceed $300,000 but are not more than$1,000,000 and one member from each municipality in which annual tax collections are $300,000 orless. Except as provided in subd.2. b., members shallbe appointed under subd.3.b.Two additional members, who represent the Wisconsinhotel and motel industry, shall be appointed tothe commission by the chairperson of the commission, shall serve for a one-year term at the pleasureof the chairperson and may be reappointed.3.Members of the commission shall be appointed bythe principal elected official in the municipality andshall be confirmed by a majority vote of the members of the municipality's governing body who arepresent when the vote is taken. Commissioners shall serve for a one-year term, at the pleasure of theappointing official, and may be reappointed.4.The commission shall meet regularly, and, fromamong its members, it shall elect a chairperson, vicechairperson and secretary.5.The commission shall report any delinquencies orinaccurate reporting to the municipality that is duethe tax.(d)1.A municipality that first imposes a room tax under par.(a)after May 13, 1994, shall spend at least70percent of the amount collected on tourism promotion and tourism development. Any amount ofroom tax collected that must be spent on tourism promotion and tourism development shall either beforwarded to the commission for its municipality or zone if the municipality has created acommission, or forwarded to a tourism entity.2.Subject to par.(dm), if a municipality collectsa room tax on May 13, 1994, it may retain not more thanthe same percentage of the room tax that it retains on May 13, 1994. If a municipality that collects aroom tax on May 1, 1994, increases its room tax after May 1, 1994, the municipality may retain notmore than the same percentage of the room tax that it retains on May 1, 1994, except that if themunicipality is not exempt under par.(am)from themaximum tax that may be imposed under par.(a), the municipality shall spend at least 70 percentof the increased amount of room tax that it beginscollecting after May 1, 1994, on tourism promotion and development. Any amount of room taxcollected that must be spent on tourism promotion and tourism development shall either beforwarded to the commission for its municipality or zone if the municipality has created acommission, or forwarded to a tourism entity.3.A commission shall use the room tax revenue that it receives from a municipality for tourismpromotion and tourism development in the zone or in the municipality.4.The commission shall report annually to each municipalityfrom which it receives room tax revenue thepurposes for which the revenues were spent.5.The commission may not use any of the room taxrevenue to construct or develop a lodging facility.6.If a municipality issued debt or bond anticipationnotes before January 1, 2005, to finance theconstruction of a municipally owned convention center or conference center, nothing in this sectionmay prevent the municipality from meeting all of the terms of its obligation.7.Notwithstanding the provisions of subds.1.and2., any amount of room tax revenue that a municipalitydescribed under s.77.994 (3)is required to spendon tourism promotion and tourism developmentshall be forwarded to, and spent by, the municipality's tourism entity, unless the municipality createsa commission and forwards the revenue to the commission.8.The governing body of a tourism entity shall includeeither at least one owner or operator of a lodgingfacility that collects the room tax described in this section and that is located in the municipality forwhich the room tax is collected or at least 4 owners or operators of lodging facilities that collect theroom tax described in this section and that are located in the zone for which the room tax iscollected. Subdivision4., as it applies to a commission,applies to a tourism entity.(dm)Beginning with the room tax collected on January1, 2017, by a municipality that collected a roomtax on May 13, 1994, as described in par.(d) 2.,and retained more than 30 percent of the room taxcollected for purposes other than tourism promotion and tourism development, such a municipalitymay continue to retain, each year, the greater of either 30 percent of its current year revenues or oneof the following amounts: 1.For fiscal year 2017, the same dollar amount of the room tax retained as the municipality retained in its2014 fiscal year.2.For fiscal year 2018, the same dollar amount ofthe room tax retained as the municipality retained in its2013 fiscal year.3.For fiscal year 2019, the same dollar amount ofthe room tax retained as the municipality retained in its2012 fiscal year.4.For fiscal year 2020, the same dollar amount ofthe room tax retained as the municipality retained in its2011 fiscal year.5.For fiscal year 2021 and thereafter, the same dollaramount of the room tax retained as the municipalityretained in its 2010 fiscal year.(e)1.Subject to subd.2., a district may adopt a resolutionimposing a room tax under par.(a)in an amountnot to exceed 3 percent of total room charges. A majority of the authorized members of the district'sboard may vote that, if the balance in a special debt service reserve fund of the district is less than therequirement under s.229.50 (5), the room tax imposedby the district under this subdivision is 3percent of total room charges beginning on the next January 1, April 1, July 1 or October 1 after thepayment and this tax is irrepealable if any bonds issued by the district and secured by the specialdebt service reserve fund are outstanding. A room tax imposed by a district under this subdivisionapplies within the district's jurisdiction, as specified in s.229.43, and the proceeds of the tax may beused only for the district's debt service on its bond obligations. If a district stops imposing andcollecting a room tax, the district's sponsoring municipality may impose and collect a room tax underpar.(a)on the date on which the district stops imposingand collecting its room tax.2.In addition to the room tax that a district mayimpose under subd.1., if the district's only sponsoringmunicipality is a 1st class city, the district may adopt a resolution imposing an additional room tax.The additional percentage of room tax under this subdivision shall be equal to the percentage ofroom tax imposed by the sponsoring municipality on the date on which the sponsoring municipalityagrees to stop imposing and collecting its room tax, as described under s.229.44 (15). A district shallbegin collecting the additional room tax imposed under this subdivision on the date on which thesponsoring municipality stops imposing and collecting its room tax. A room tax imposed by a districtunder this subdivision applies only within the borders of the sponsoring municipality and may beused for any lawful purpose of the district.3.A district adopting a resolution to impose thetaxes under subd.1.or2.shall deliver a certifiedcopy ofthe resolution to the secretary of revenue at least 120 days before its effective date.(f)1.The department of revenue shall administer thetax that is imposed under par.(a)by a district andmaytake any action, conduct any proceeding and impose interest and penalties.2.Sections77.51 (12m),(13),(14),(14g),(15a),(15b), and(17),77.52 (3),(3m),(13),(14),(18),and(19),77.522,77.523,77.58 (1)to(5),(6m), and(7),77.585,77.59,77.60,77.61 (2),(3m),(5),(8),(9),(12)to(15), and(19m), and77.62, as they applyto the taxes under subch.III of ch. 77, apply tothe tax described under subd.1.3.From the appropriation under s.20.835 (4) (gg),the department of revenue shall distribute 97.45percent of the taxes collected under this paragraph for each district to that district and shall indicateto the district the taxes reported by each taxpayer in that district, no later than the end of the monthfollowing the end of the calendar quarter in which the amounts were collected. The taxes distributedshall be increased or decreased to reflect subsequent refunds, audit adjustments and all otheradjustments. Interest paid on refunds of the tax under this paragraph shall be paid from theappropriation under s.20.835 (4) (gg)at the rateunder s.77.60 (1) (a). Any district that receives areport along with a payment under this subdivision or subd.2.is subject to the duties ofconfidentiality to which the department of revenue is subject under s.77.61 (5).5.Persons who are subject to the tax under this subsection,if that tax is administered by the department ofrevenue, shall register with the department. Any person who is required to register, including anyperson authorized to act on behalf of a person who is required to register, who fails to do so is guilty of a misdemeanor.(g)Sections77.51 (10),(12m),(13),(13g),(14),(14g),(15a),(15b), and(17),77.52 (3),(3m),(13),(14),(18), and(19),77.522,77.523,77.53 (7),77.54,77.58 (6m), and77.585, as they apply to the taxesunder subch.III of ch. 77, shall apply to the taximposed under par.(a)by a municipality.(1r) (a)A marketplace provider shall collect the tax imposedby a municipality under sub.(1m)for amarketplace seller, unless the marketplace provider has been issued a waiver under s.77.52 (3m) (b)or(c), and forward it to the municipality, on a quarterlybasis, along with a form prepared by thedepartment of revenue as described under par.(b),except that a marketplace provider shall forwardthe tax to the municipality more frequently if the marketplace provider and the municipality enterinto a written agreement providing for more frequent submissions. The marketplace provider shallnotify the marketplace seller that the marketplace provider has collected and forwarded the taxesdescribed in this paragraph. A municipality may not impose and collect a room tax from themarketplace seller if the municipality collects the room tax as described in this paragraph.(b) The form prepared by the department of revenue as described under par. (a)shall contain at leastthefollowing information about the room tax imposed under sub.(1m)on the marketplace provider:1. The total sales for properties located in a municipality with a room tax.2. The total number of nights properties located in a municipality with a room tax were rented.3. The rate of the room tax applied to the amount specified in subd. 1.4. The total tax due for properties located in a municipality with a room tax.(c) No later than September 29, 2021, and updated annually, the department of revenue shall create awebsite that contains the following information about room tax collections:1. The name and mailing address of each municipality that imposes a room tax under sub. (1m).2. The rate of the room tax imposed by each municipality specified in subd. 1.(2) As a means of enforcing the collection of anyroom tax imposed by a municipality or a district undersub.(1m), the municipality or district may do anyof the following:(a)If a municipality or district has probable causeto believe that the correct amount of room tax has notbeen assessed or that the tax return is not correct, inspect and audit the records of any person subjectto sub.(1m)pertaining to the furnishing or sellingof accommodations to determine the correctamount of room tax due. A determination under this paragraph shall be provided in writing within 4years after the due date of the return, unless no return has been filed.(b)Enact a schedule of forfeitures, not to exceed5 percent of the tax under sub.(1m)or par.(c),to beimposed on any person subject to sub.(1m)who failsto comply with a request to inspect and auditthe person's records under par.(a).(c)Determine the tax under sub.(1m)according toits best judgment if a person required to make a returnfails, neglects or refuses to do so for the amount, in the manner and form and within the timeprescribed by the municipality or district.(d)Require each person who is subject to par.(c)to pay an amount of taxes that the municipality ordistrict determines to be due under par.(c)plusinterest at the rate of 1 percent per month on theunpaid balance. No refund or modification of the payment determined may be granted until theperson files a correct room tax return and permits the municipality or district to inspect and audit hisor her financial records under par.(a).(e)Enact a schedule of forfeitures, not to exceed25 percent of the room tax due for the previous yearunder sub.(1m)or par.(c)or $5,000, whichever isless, to be imposed for failure to pay the tax undersub.(1m). This paragraph also applies to a marketplaceprovider that is required to collect and remittaxes imposed by a municipality under sub.(1m), butthat fails to file a return as required in sub.(1r)or pay the required tax.(2m) (a)To enforce the collection of a room tax imposedby a district under sub.(1m), the district mayexchange audit and other information relating to the room tax with the department of revenue.(b) To enforce the collection of a room tax imposed by a municipality under sub. (1m), the municipalitymay jointly inspect and audit the room tax records of a person subject to sub.(1m)with other municipalities only for the purpose of conducting a joint room tax audit. A municipality may provideaudit and other information to the department of revenue, and may exchange audit and other roomtax related information with any municipality that took part in conducting the joint audit.(3) The municipality shall provide by ordinance andthe district shall provide by resolution for theconfidentiality of information obtained under subs.(1r)and(2)but shall provide exceptions forpersons using the information in the discharge of duties imposed by law or of the duties of theiroffice or by order of a court. The municipality or district may provide for the publishing of statisticsclassified so as not to disclose the identity of particular returns. The municipality or district shallprovide that persons violating ordinances or resolutions enacted under this subsection may berequired to forfeit not less than $100 nor more than $500.(4) (a)Except as provided in par.(d), annually, on orbefore May 1, on a form created and provided by thedepartment of revenue, every municipality that imposes a tax under sub.(1m)shall certify and reportto the department all of the following:1.The amount of room tax revenue collected, and theroom tax rate imposed, by the municipality in theprevious year.2.A detailed accounting of the amounts of such revenuethat were forwarded in the previous year fortourism promotion and tourism development, specifying the commission or tourism entity thatreceived the revenue. The detailed accounting shall include expenditures of at least $1,000 made by acommission or a tourism entity.3.A list of each member of the commission and eachmember of the governing body of a tourism entity towhich the municipality forwarded room tax revenue in the previous year, and the name of thebusiness entity the member owns, operates, or is employed by, if any.4.For a municipality subject to sub.(1m) (dm), theamount of the room tax retained by the municipalityin each of the following fiscal years: 2010, 2011, 2012, 2013, and 2014.(b)The department of revenue shall collect the reportsdescribed in par.(a)and shall make them availableto the public.(c)The department of revenue may impose a penaltyof not more than $3,000 on a municipality that doesnot submit to the department the reports described in par.(a). A municipality may not use room taxrevenue to pay a penalty imposed under this paragraph. The penalty shall be paid to the departmentof revenue.(d)Notwithstanding the requirement in par.(a) (intro.),the information specified in par.(a) 4.may becertified and reported to the department only once if the municipality submits the information notlater than May 1, 2022. The department shall make such information available to the public annuallyin the report described in par.(a) (intro.).History:1983 a. 189, 514;1993 a. 263, 467, 491;1999 a. 9;1999 a. 150ss.565to567; Stats. 1999s. 66.0615;2003 a. 203;2005 a. 135;2007 a. 20;2009 a. 2;2011 a. 18, 32;2013 a. 20;2015 a. 55, 60, 301;2017 a. 59;2019a. 10;2021 a. 55.A city was authorized to enact a room tax. The gross receipts method was a fair and reasonable way of calculating the tax. BlueTop Motel, Inc. v. City of Stevens Point,107 Wis.2d 392, 320 N.W.2d 172(1982).Under sub. (1m) (am), this section favors expenditures to construct or improve convention facilities. However, sub. (1m) (am),only addresses when a municipality may impose a room tax rate of greater than 8 percent and is irrelevant when the city has notexceeded that maximum. The only restrictions the rest of the statute places on the use of room tax monies are found in sub. (1m)(d), which directs a municipality to spend a certain percentage on “tourism promotion and development, which means thepromotion and development of travel for recreational, business, or educational purposes. English Manor Bed and Breakfast v.City of Sheboygan,2006 WI App 91, 292 Wis. 2d 762, 716 N.W.2d 531, 05-1358. Provided as a service of the Wisconsin Hotel & Lodging Association. This is not intended to replace qualified legalcounsel. For Wisconsin Room Tax resources, visit www.WisconsinLodging.org/roomtax. Contact: Bill Elliott, CAE (President & CEO) | 262-782-2851 ext. 10 | belliott@wisconsinlodging.org | July 2021 The following is a basic overview of the components of WI. Room Tax Statute 66.0615 specifically relating to tourismcommissions. Definition of “Commission”:An entity created byone municipality or by 2 or more municipalities in a zone, tocoordinate tourism promotion and tourism development for the zone. Tourism Commission FOR A SINGLE MUNICIPALITYComposition: 4-6 members. One of the members shall represent the Wisconsin hotel and motel industry.Appointed by: The principal elected official in themunicipality, with confirmation required by a majority voteof the members of the municipality’s governing body present when the vote is taken.Terms: One year, at the pleasure of the appointingofficial. They may be re-appointed.Required Actions:1. It shall contract with another organization to perform the functions of a tourism entity if no tourismentity exists in that municipality.2. It shall meet regularly, and shall elect a chairperson, vice chairperson, and secretary from itsmembers.3. It shall use the room tax revenue that it receives from a municipality for tourism promotion andtourism development (as defined in the statute) in the municipality.4. It shall report annually to the municipality providing the room tax revenue, the purposes for whichthe revenues were spent.5. It shall report any delinquencies or inaccurate reporting to the municipality.6. It shall not use any of the room tax revenue to construct or develop a lodging facility.7. If a municipality issued debt or bond anticipation notes before January 1, 2005, to finance theconstruction of a municipally owned convention or conference center, nothing in this section mayprevent the municipality from meeting all of the terms of its obligation. Tourism Commission FOR A TOURISM ZONE(“Zone” is defined in 66.0615 as “an area made up of 2 or more municipalities that, those municipalities agree, is asingle destination as perceived by the traveling public”) Composition: 3 members from each municipality inwhich annual room tax collections exceed $1 million. 2members from each municipality in which annual room tax collections are more than 300,000, but less than$1 million. One member from each municipality in which annual room tax collections are $300,000 or less.Two additional members representing the Wisconsin hotel and motel industry shall also be appointed.Appointed by: the municipality representatives shall be appointed by the principal elected official in themunicipality, with confirmation required by a majority vote of the members of the municipality’s governingbody present when the vote is taken. The two hotel and motel industry representatives shall be appointed bythe Chairperson of the Commission. Terms:One year term, at the pleasure of the appointing official, and they may be reappointed.Required Actions:1. The municipalities shall enter into a contract to create a commission.2. It shall meet regularly, and from among its members, shall elect a chairperson, vice chairperson,and secretary.3. Each municipality in the zone shall levy the same percentage of tax. If they are unable to agree onthe percentage of tax for the zone, the commission shall set the percentage4. It shall contract with one tourism entity from the municipalities in the zone to obtain staff, supportservices and assistance in developing and implementing programs to promote the zone to visitors.5. If no tourism entity exists in any of the municipalities in the zone that have formed a commission,the commission shall contract with another organization in the zone to perform the functions of thetourism entity.6. It shall use the room tax revenue that it receives from a municipality for tourism promotion andtourism development (as defined in the statute) in the zone or in the municipality.7. It shall report annually to each municipality from which it receives room tax revenue the purposesfor which the revenues were spent.8. It shall not use any of the room tax revenue to construct or develop a lodging facility.9. It shall monitor the collection of room taxes from each municipality in the zone that has a room tax.10. It shall report any delinquencies or inaccurate reporting to the municipality that is due the tax.11. If a municipality issued debt or bond anticipation notes before January 1, 2005, to finance theconstruction of a municipally owned convention or conference center, nothing in this section mayprevent the municipality from meeting all of the terms of its obligation. Provided as a service of the Wisconsin Hotel & Lodging Association. This is notintended to replace qualified legal counsel. For Wisconsin Room Tax resources,visitwww.WisconsinLodging.org/roomtax. Contact: Bill Elliott, CAE (President & CEO) | 262-782-2851 ext. 10 | belliott@wisconsinlodging.org TAP 9/8/15BE 3/18/22 Two separate significant changes relating to Tourism Entities in the Wisconsin Room Tax Statute 66.0615 took place in the 2015/16state legislative sessions. Both changes are incorporated into this Overview in order to provide current guidance on the updated law. First, in July 2015 with the adoption of WI. Act 55, a municipality imposing a room tax will, as of January 1, 2017, have exactly twochoices relating to the oversight of the portion of Room Tax revenue that must be allocated to “tourism promotion and tourismdevelopment”(TP&TD). This portion must be given to either a tourism “commission”ora “tourism entity”. There are specificrequirements relating to each of these. WH&LA’s “TourismCommission Overview”is covered separately in theWisconsin Room TaxSeriesresources, and this composition provides anoverview for the Tourism Entity. Second, on March 30, 2016, WI. Act 301 was signed into law providing revisions to the statutory definition of “Tourism Entity” and thecomposition of its governing body, all of which went into effect immediately. New Statutory Definition of “Tourism Entity”(f)"Tourism entity" means a nonprofit organizationthat came into existence before January 1, 2015, spends at least 51percent of its revenues on tourism promotion and tourism development, and provides destination marketing staff andservices for the tourism industry in a municipality, except that if no such organization exists, a municipality may contract withone of the following entities:1. A nonprofit organization that spends at least 51 percent of its revenues on tourism promotion and tourismdevelopment, and provides destination marketing staff and services for the tourism industry in a municipality.2. A nonprofit organization that was incorporated before January 1, 2015, spends 100 percent of the room tax revenueit receives from a municipality on tourism promotion and tourism development, and provides destination marketingstaff and services for the tourism industry in a municipality. To provide clarity to this definition, we will address 3 types of organizations that could be eligible to provide tourism promotion andtourism development services for a municipality or Tourism Commission, per 66.0615. “Tourism Entity”An existing entity that fits the definition of “Tourism Entity” must have achievedall of the following:● Official classification by the IRS as a non-profit organization by January 1, 2015 (Note: governmental agencieshave a different classification)● Spends a minimum of 51% of the entity’s revenue on tourism promotion and tourism development (as per thestatutory definition)● Provides destination marketing staff and services for the tourism industry in a municipality. (Note:with thisdefinition, a Tourism Entity may service more than one municipality, and does not need to be located in eachmunicipalityit services). A Tourism Entity may receive room tax revenue either directly from a municipality or from an appointed TourismCommission that contracts with them. Regardless of which way they receive their room tax revenue, all of it must bespent on “tourism promotion and tourism development “ as defined in the statute. If there is no “Tourism Entity” fitting the definition outlined above, a municipality or a tourism commission may contractwith one of the following alternate organizations to expend the room tax revenue allocated for tourism promotion anddevelopment (TP&TD), as outlined in the statute: 1 Alternate Nonprofit Organization Option #1(Generallya post-January 1, 2015 CVB or Chamber ofCommerce)This organization would typically be a more recently created convention and visitors bureau (CVB), also sometimes knownas a destination marketing organization (DMO), or a chamber of commerce in a dominantly tourist area. The differencebetween this organization and a “tourism entity” is purely the creation date. The requirements are:● Official classification by the IRS as a non profit organization (with no date requirement)● Spends a minimum of 51% of the entity’s revenue on tourism promotion and tourism development (as per thestatutory definition)● Provides destination marketing staff and services for the tourism industry in the municipality. Alternate Nonprofit Organization Option #2(Generallyan established Chamber ofCommerce focusing and spending most of their revenue on the development of multipleindustries,but using the room tax revenue received only for TP&TD)The difference between this organization, usually a chamber of commerce, and a “tourism entity” is that the majority of theirbudget is not spent on TP&TD, but all of their room tax revenue is. The requirements are:● Official classification by the IRS as a nonprofit organization prior to January 1, 2015.● Spends 100 percent of the room tax revenue it receives on tourism promotion and tourism development (TP&TD)as outlined in the statute.● Provides destination marketing staff and services for the tourism industry in the municipality What Requirements Must a Tourism Entity Follow?Under the state statutes, a Tourism Entity must:● Expend all of the room tax revenue received on tourism promotion and tourism development (as defined instatute)● Include in their governing body at least one owner or operator of a lodging facility collecting room tax that islocated in the municipality for which the room tax is collected. For a Tourism Entity servicing a “zone” with multiplemunicipalities, a minimum of four (4) owners or operators of lodging facilities in the zone must be included in thegoverning body.● Provide an annual report on the purposes for which the room tax revenues were spent, to each municipality itreceives room tax revenue from. Definition of “tourism promotion and tourism development” (TP&TD):(fm)"Tourism promotion and tourism development"means any of the following that are significantly used by transienttourists and reasonably likely to generate paid overnight stays at more than one establishment on which a tax under sub.(1m) (a)may be imposed, that are owned by differentpersons and located within a municipality in which a tax under thissection is in effect; or, if the municipality has only one such establishment, reasonably likely to generate paid overnightstays in that establishment:1.Marketing projects, including advertising mediabuys, creation and distribution of printed or electronic promotional touristmaterials, or efforts to recruit conventions, sporting events, or motorcoach groups.2.Transient tourist informational services.3.Tangible municipal development, including a conventioncenter. Provided as a service of the Wisconsin Hotel & Lodging Association. This is notintended to replace qualified legal counsel. For Wisconsin Room Tax resources, visitwww.WisconsinLodging.org/roomtax. Contact: Bill Elliott, CAE (President & CEO) | 262-782-2851 ext. 10 | belliott@wisconsinlodging.org TAP July 2016BE March 2022 2