ORD20091302-Room Tax
COMMON COUNCIL - CITY OF MUSKEGO
ORDINANCE #1302
AN ORDINANCE TO RECREATE CHAPTER 3,
§3.10 OF THE MUNICIPAL CODE
OF THE CITY OF MUSKEGO
THE COMMON COUNCIL OF THE CITY OF MUSKEGO, WISCONSIN, DO ORDAIN AS
FOLLOWS:
SECTION 1: Chapter 3, §3.10 of the Municipal Code of the City of Muskego is hereby
recreated as follows:
3.10 1. DEFINITIONS. For the purpose of this section, the following words and phrases
shall have the following meanings pursuant to §66.0615, Wisconsin Statutes:
A. Hotel or Motel. A building or group of buildings in which the public may
obtain accommodations for consideration including, without limitation, such
establishments as in, motels, hotels, tourist homes, tourist housing or courts,
lodging houses, rooming houses, summer camps, apartment hotels, resort
lodges and cabins and other building or group of buildings in which
accommodations are available to the public, except accommodations
including mobile homes as defined in §66.0435(1)(d), Wisconsin Statutes,
whether the home is classified as real or personal property, rented for a
continuous period of one month or more, and accommodations furnished by
any hospitals, sanatoriums or nursing homes or by corporations or
associations organized and operated exclusively for religious, charitable or
education purposes, provided that no part of the net earnings of such
corporations and associations inures to the benefit of any private shareholder
or individual. In this subdivision, “one month” means a calendar month or
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30 days, whichever is less, counting the first day of the rental and not
counting the last day of the rental.
B. Gross Receipts. As defined in §77.51(4)(a), (b) and (c), Wisconsin
Statutes, insofar as applicable.
C. Transient. Any person residing for a continuous period of less than one
month in a hotel, motel or other furnished accommodation available to the
public.
D. Shall. “Shall” is always mandatory and not merely directory.
2. IMPOSITION OF ROOM TAX. Pursuant to and in conformity with §66.0615,
Wisconsin Statutes, a tax is hereby imposed on the privilege and service of furnishing
retail rooms, lodging or sites to transients by hotel keepers, motel operators and other
persons furnishing accommodations which are available to the public, irrespective of
whether membership is required for the use of the accommodations. Such tax shall be at
the rate of eight (8) percent of the gross receipts from such retail furnishing of rooms,
lodging or sites. Such tax shall not be subject to the selective sales tax imposed by
§77.52(2)(a)(1), Wisconsin Statutes.
3. DISTRIBUTION OF TAXES COLLECTED. The proceeds of such tax when
collected shall be apportioned 30% to the City General Fund and the remaining 70% shall
be spent on tourism promotion and development.
4. ISSUANCE OF PERMIT.
A. Application for Permit. Every person furnishing rooms or lodging under
Subsection (2) for the purpose of identifying such business shall file with the
City Finance Director an application for a permit for each place of business.
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Every application for a permit shall be made upon a form prescribed by the
City Finance Director and shall set forth the name under which the applicant
transacts or intends to transact business, the location of the place of
business and such other information as the City Finance Director requires.
The application shall contain an authorization to the Wisconsin Department of
Revenue to release sales tax returns and information to the City Finance
Director. 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 applicant.
B. Issuance. After compliance with Paragraph A by the applicant, the City
Finance Director shall grant and issue to each applicant a separate permit
for each place of business within the City. Such permit is not assignable
and is valid only for the purpose in whose name it is issued and for the
transaction of business at the place designated therein. It shall at all times
be conspicuously displayed at the place for which issued.
5. ADMINISTRATION.
A. Each retailer covered by this section shall submit a quarterly report to the
City Finance Director showing the gross receipts from furnishing such
accommodations, rooms or lodging, along with a copy of the State Sales
Tax Report for said business along with the effective percentage tax for the
gross receipts as reported by not later than 30 days from the end of each
calendar quarter for the receipts of that past calendar quarter.
B. Taxes not paid with the return shall bear interest at the legal rate from the
due date of the return. Failure to pay the tax, or delinquent payment of
such taxes, shall be subject to a late filing penalty of $10 in addition to the
interest imposed herein.
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C. Whenever the City has probable cause to believe that the correct amount of
room tax has not been assessed or that the tax return is not correct, the
City’s financial officers may inspect and audit the financial records of any
person subject to Section 2 above pertaining to the furnishing of
accommodations to determine whether or not the correct amount of room tax
is assessed and whether or not any room tax return is correct.
D. Any person under Section 2 who fails to comply with a request to inspect
and audit the person’s financial records under Subsection B above shall
forfeit an amount established by the Municipal Court, not to exceed 5% of
the tax.
E. The City may determine the tax under Section 2 above according to its best
judgment if any person required to make a return fails, neglects or refuses to
do so for the amount, in the manner and form, and within the time
prescribed by the City.
F. Each person who is subject to Subsection D above shall pay an amount of
taxes the City determines to be due under Subsection D plus interest at the
rate of 1% per month on the unpaid balance. No refund or modification of
the payment determined may be granted until the person files a correct room
tax return and permits the City to inspect and audit the financial records as
provided in Subsection B above.
G. Any failure to pay the tax shall be subject to a forfeiture set by the Municipal
Court, not to exceed 25% of the room tax due for the previous year under
Section 2 above or $5,000, whichever is less.
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H. Information obtained under Subsection B above shall be kept confidential,
except for the persons using the information in the discharge of duties
imposed by law or the duties of their office or by order of a court.
I. Statistics published on the room tax shall be so classified as not to disclose
the identity of particular returns. Persons violating this subsection may be
required to forfeit not less than $100 nor more than $500. Statistics
published on the room tax shall be so classified as not to disclose the
identity of particular returns. Persons violating this subsection may be
required to forfeit not less than $100 nor more than $500.
J. If a false or fraudulent return is filed with the intent, in either case, to defeat
or evade the tax imposed by this section, a penalty of 50% of the tax due
shall be paid in addition to the tax interest and late filing penalty.
SECTION 2: The several sections of this ordinance are declared to be severable. If any
section or portion thereof shall be declared by a decision of a court of competent
jurisdiction to be invalid, unlawful, or unenforceable, such decision shall apply only to the
specific section or portion thereof directly specified in the decision, and not affect the
validity of all other provisions, sections, or portion thereof of the ordinance which shall
remain in full force and effect. Any other ordinance whose terms are in conflict with the
provisions of this ordinance are hereby repealed as to those terms that conflict.
SECTION 3: This ordinance shall be in full force and effect from and after its passage
and publication.
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PASSED AND APPROVED THIS 28 DAY OF JULY , 2009.
CITY OF MUSKEGO
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_____________________________
John Johnson, Mayor
First Reading: 07/14/2009
ATTEST:
___________________________
Janice Moyer, Clerk
Notice of Newly Enacted Ordinance Published August 6, 2009
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