§ 78-3. Room tax.

(a)

Definitions.

Hotel has the meaning given in W.S.A., § 77.52(2)(a)1.

Motel has the meaning given in W.S.A., § 77.52(2)(a)1.

Person shall include corporation, partnerships, and all other business entities.

Tourism means travel for recreational, business or educational purposes.

Tourism entity means a nonprofit organization that came into existence before January 1, 1992, and provides staff, development or promotional services for the tourism industry in a municipality.

Transient has the meaning given in W.S.A., § 77.52(2)(a)1.

(b)

Imposition of room tax. Pursuant to W.S.A., § 66.75, a tax is imposed on the privilege of furnishing, at retail, except sales for resale, rooms or lodging to transients by hotelkeepers, motel operators and other persons furnishing accommodations that are available to the public, irrespective of whether membership is required for use of the accommodations. This tax shall not be imposed on sales to the federal government and persons listed under W.S.A., § 77.54 (9a). Such tax shall be at the rate of six percent of the gross receipts from such retail furnishing of rooms or lodging excluding statutorily exempt transactions. Seventy percent of the tax collected shall be forwarded by the village treasurer to the commission to be used to promote tourism development within the Village of Mukwonago.

(c)

Commission.

(1)

The commission shall consist of four members who shall be appointed by the village president and confirmed by a majority vote of the members of the village board who are present when the vote is taken. One commission member shall represent the Wisconsin hotel and motel industry. Commissioners shall serve for a one-year term, at the pleasure of the village president, and may be reappointed. The commission shall meet regularly, and, from among its members, it shall elect a chairperson, vice chairperson and secretary.

(2)

The commission shall provide an annual report to the village board which sets forth the manner in which the tourism promotion revenues were spent.

(3)

The commission shall contract with one organization to perform the functions of a tourism entity. The commission shall use the room tax revenue that it receives to promote and develop tourism within the Village of Mukwonago.

(4)

The commission may not use any of the room tax revenue to construct or develop a lodging facility.

(d)

Collection of tax.

(1)

The tax shall be administered and collected by the village treasurer. The treasurer may, by field audit, determine the tax required to be paid to the village or the refund due. The treasurer's determination shall be made upon the basis of the facts contained in the return being audited and upon any other information available to the treasurer. The treasurer is authorized to examine and inspect the books, records, memoranda (in whatever form) and property of any person which are directly related to the tax or which have a direct bearing upon the gross receipts upon which the tax due is determined in order to verify the tax liability of that person or business entity.

(2)

The room tax shall be paid on a quarterly basis to the village treasurer. It is due and payable and must be received in the office of the village treasurer on or before the last business day of the month next succeeding the calendar quarter for which it is imposed.

(3)

A return shall be filed with the village treasurer on or before the same date on which the tax is due and payable. Such return shall be on a form provided by the village and shall show the gross receipts of the preceding calendar quarter from such retail furnishing of rooms or lodging, the amount of taxes imposed for such period, and such other information as the village treasurer deems necessary, provided it is directly related to the tax.

(4)

Every person required to file such quarterly returns shall also file an annual return on a form provided by the village treasurer. The completed returns shall be due and filed as part of the quarterly return for the fourth quarter of each calendar year. The annual return shall summarize the quarterly returns, reconcile and adjust for any errors in quarterly returns, and shall contain additional information as required by the village treasurer, provided it relates directly to the tax. All quarterly and annual returns shall be signed by the person required to file a return, or his or her duly authorized agent.

(5)

Every person liable for the tax imposed under this section shall cause to be kept such records, receipts, invoices and other pertinent papers in such form as the village treasurer and this section requires. Such records shall be retained and made available upon demand for a period of three years from the due date of a filing period.

(6)

The room tax imposed shall be a continuing liability upon the business entity or person upon whom it is imposed until paid in full. Business successors shall be liable for the preceding calendar quarter for which a return has not been filed and/or for which payment has not been received.

(7)

All unpaid room taxes shall bear interest at the rate of 12 percent per annum from the due date of the return until the first day of the month following the month in which the tax is paid.

(8)

If a person files a false or fraudulent return with the intent to defeat or evade any portion of the tax imposed, then a penalty of 50 percent shall be added to the tax required to be paid, exclusive of interest and other penalties.

(e)

Enforcement.

(1)

The village may exchange audit and other information with the department of revenue and may do any of the following:

a.

Whenever the village has probable cause to believe that the correct amount of room tax has not been assessed or that the tax return is not correct, inspect and audit the financial records of any person or entity subject to the room tax to determine whether or not the correct amount of room tax is assessed and whether or not any room tax return is correct.

b.

Enact a schedule of forfeitures, not to exceed five percent of the room tax, to be imposed on any person or entity subject to the room tax who fails to comply with a request to inspect and audit the person's financial records.

c.

Determine the room tax owed 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 village.

d.

Require each person subject to the room tax to pay an amount of taxes that the municipality determines to be due plus interest at the rate of one percent 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 municipality or district to inspect and audit his or her financial records under par. (a).

e.

Impose a forfeiture, not to exceed 25 percent of the room tax due for the previous year, or $5,000.00, whichever is less, to be imposed for failure to pay the tax.

(2)

Village officials shall maintain the confidentiality of information obtained under [section] 78-3(e)(1) except to allow individuals access to the information for persons using the information in the discharge of duties imposed by law or of the duties of their office or by order of a court. Village officials or other persons violating this subsection may be required to forfeit not less than $100.00 nor more than $500.00.

(Ord. No. 638, § I, 1-5-99)