Tourism Development Commission (Meets on the first Tuesday at 1PM)

Phone: (715) 395-7200 1316 North 14th Street, Ste 200 Fax: (715) 395-7590 Superior, WI 54880 E-mail: cityclerk@ci.superior.wi.us Website: www.ci.superior.wi.us AGENDA TOURISM DEVELOPMENT COMMISSION FRIDAY, OCTOBER 8, 2021 3:45 P.M. - CITY COUNCIL CHAMBERS Members: Steve Knauss, JoAnn Jardine, Lindsey Graskey (Council Representative), Keith Kern (Council Representative), Bruce Barron, and Emerson Sloane AGENDA: 1. Roll Call 2. Public Comment 3. Orientation/charge including history of past hotel/motel spending 3.1 WI State Statutes regulating Room Tax (pages 84-88) 3.2 Recently adopted City Code pertaining to Tourism Development Commission 3.3 Financial overview from years past 4. Create TDC mission statement 5. General plan for the coming months, including setting regular meeting date/time 6. Duties of officers 7. Election of officers 8. Discussion of potential budget/allocation plan 9. Discussion on RFP for visitor center and marketing 10. Set next meeting time 11. Adjournment Notice is hereby given that a majority of the members of the Common Council may be present at the meeting, and although this may constitute a quorum of the Common Council, the Council will not take any action at this meeting. ********************************************************************************************************************* Tourism Development Commission, 10/08/2021 Meeting Page 1 of 2 Pursuant to the Americans with Disabilities Act of 1990, if you are in need of an accommodation to participate in the public meeting process, please contact Nick Raverty at (715) 395-7212 by 4:30 p.m. on the day prior to the scheduled meeting date (OR dial 711 for Telecommunications Relay Service). The City will attempt to accommodate any request depending on the amount of notice received. ********************************************************************************************************************* In compliance with Wisconsin Open Meetings Law, this agenda was posted on 10/6/2021 at the following locations: Superior Government Center, Douglas County Courthouse, and online at https://www.ci.superior.wi.us/agendacenter. It was also faxed to the Superior Public Library. Tourism Development Commission, 10/08/2021 Meeting Page 2 of 2  Updated 2019−20 Wis. Stats. Published and certified under s. 35.18. October 1, 2021. 66.0611 MUNICIPAL LAW Updated 19−20 Wis. Stats. 84 66.0611 Political subdivisions prohibited from levying 1. Marketing projects, including advertising media buys, cre- tax on incomes. No county, city, village, town, or other unit of ation and distribution of printed or electronic promotional tourist government authorized to levy taxes may assess, levy or collect materials, or efforts to recruit conventions, sporting events, or any tax on income, or measured by income, and any tax so motorcoach groups. assessed or levied is void. 2. Transient tourist informational services. History: 1999 a. 150 s. 562; Stats. 1999 s. 66.0611. 3. Tangible municipal development, including a convention 66.0613 Assessment on racing prohibited. Notwith- center. standing subch. V of ch. 77, no county, town, city or village may (g) “Transient” has the meaning given in s. 77.52 (2) (a) 1. levy or collect from any licensee, as defined in s. 562.01 (7), any (h) “Zone” means an area made up of 2 or more municipalities fee, tax or assessment on any wager in any race, as defined in s. that, those municipalities agree, is a single destination as per- 562.01 (10), or on any admission to any racetrack, as defined in ceived by the traveling public. s. 562.01 (12), except as provided in s. 562.08. (1m) (a) The governing body of a municipality may enact an History: 1987 a. 354; 1991 a. 39; 1999 a. 150 s. 564; Stats. 1999 s. 66.0613. ordinance, and a district, under par. (e), may adopt a resolution, 66.0615 Room tax; forfeitures. (1) In this section: imposing a tax on the sales price from selling or furnishing, at (a) “Commission” means an entity created by one municipal- retail, except sales for resale, rooms or lodging to transients by ity or by 2 or more municipalities in a zone, to coordinate tourism hotelkeepers, motel operators, marketplace providers, owners of promotion and tourism development for the zone. short−term rentals, and other persons or retailers selling or fur- nishing accommodations that are available to the public, irrespec- (am) “District” has the meaning given in s. 229.41 (4m). tive of whether membership is required for use of the accommo- (b) “Hotel” has the meaning given in s. 77.52 (2) (a) 1. dations. A tax imposed under this paragraph may be collected (bt) “Marketplace provider” has the meaning given in s. 77.51 from the consumer or user, but may not be imposed on sales to the (7i), to the extent that the marketplace provider facilitates the sale federal government and persons listed under s. 77.54 (9a). A tax or furnishing of rooms, lodging, or other accommodations to tran- imposed under this paragraph by a municipality shall be paid to sients under sub. (1m) (a). the municipality and, with regard to any tax revenue that may not (bu) “Marketplace seller” has the meaning given in s. 77.51 be retained by the municipality, shall be forwarded by the munici- (7j). pality to a tourism entity or a commission if one is created under (c) “Motel” has the meaning given in s. 77.52 (2) (a) 1. par. (c), as provided in par. (d). Except as provided in par. (am), (d) “Municipality” means any city, village or town. a tax imposed under this paragraph by a municipality may not (de) “Occupant” means a person who rents a short−term rental exceed 8 percent of the sales price. Except as provided in par. through a marketplace provider. (am), if a tax greater than 8 percent of the sales price under this paragraph is in effect on May 13, 1994, the municipality imposing (df) “Owner” means the person who owns the residential the tax shall reduce the tax to 8 percent, effective on June 1, 1994. dwelling that has been rented. (am) A municipality that imposes a room tax under par. (a) is (di) “Residential dwelling” means any building, structure, or not subject to the limit on the maximum amount of tax that may part of the building or structure, that is used or intended to be used be imposed under that paragraph if any of the following apply: as a home, residence, or sleeping place by one person or by 2 or more persons maintaining a common household, to the exclusion 1. The municipality is located in a county with a population of all others. of at least 380,000 and a convention center is being constructed (dk) “Short−term rental” means a residential dwelling that is or renovated within that county. offered for rent for a fee and for fewer than 30 consecutive days. 2. The municipality intends to use at least 60 percent of the (dm) “Sponsoring municipality” means a city, village or town revenue collected from its room tax, of any room tax that is greater that creates a district either separately or in combination with than 7 percent, to fund all or part of the construction or renovation another city, village, town or county. of a convention center that is located in a county with a population of at least 380,000. (e) “Tourism” means travel for recreational, business or educa- tional purposes. 3. The municipality is located in a county with a population of less than 380,000 and that county is not adjacent to a county (f) “Tourism entity” means a nonprofit organization that came with a population of at least 380,000, and the municipality is con- into existence before January 1, 2015, spends at least 51 percent of its revenues on tourism promotion and tourism development, structing a convention center or making improvements to an exist- and provides destination marketing staff and services for the tour- ing convention center. ism industry in a municipality, except that if no such organization 4. The municipality has any long−term debt outstanding with exists, a municipality may contract with one of the following enti- which it financed any part of the construction or renovation of a ties: convention center. 1. A nonprofit organization that spends at least 51 percent of (b) 1. If a single municipality imposes a room tax under par. its revenues on tourism promotion and tourism development, and (a), the municipality may create a commission under par. (c). The provides destination marketing staff and services for the tourism commission shall contract with another organization to perform industry in a municipality. the functions of a tourism entity if no tourism entity exists in that 2. A nonprofit organization that was incorporated before Jan- municipality. uary 1, 2015, spends 100 percent of the room tax revenue it 2. If 2 or more municipalities in a zone impose a room tax receives from a municipality on tourism promotion and tourism under par. (a), the municipalities shall enter into a contract under development, and provides destination marketing staff and ser- s. 66.0301 to create a commission under par. (c). If no tourism vices for the tourism industry in a municipality. entity exists in any of the municipalities in the zone that have (fm) “Tourism promotion and tourism development” means formed a commission, the commission shall contract with another any of the following that are significantly used by transient tour- organization in the zone to perform the functions of the tourism ists and reasonably likely to generate paid overnight stays at more entity. Each municipality in a single zone that imposes a room tax than one establishment on which a tax under sub. (1m) (a) may be shall levy the same percentage of tax. If the municipalities are imposed, that are owned by different persons and located within unable to agree on the percentage of tax for the zone, the commis- a municipality in which a tax under this section is in effect; or, if sion shall set the percentage. the municipality has only one such establishment, reasonably 3. A commission shall monitor the collection of room taxes likely to generate paid overnight stays in that establishment: from each municipality in a zone that has a room tax. 2019−20 Wisconsin Statutes updated through 2021 Wis. Act 79 and through all Supreme Court and Controlled Substances Board Orders filed before and in effect on October 1, 2021. Published and certified under s. 35.18. Changes effective after Octo- ber 1, 2021, are designated by NOTES. (Published 10−1−21)  Updated 2019−20 Wis. Stats. Published and certified under s. 35.18. October 1, 2021. 85 Updated 19−20 Wis. Stats. MUNICIPAL LAW 66.0615 4. A commission shall contract with one tourism entity from s. 77.994 (3) is required to spend on tourism promotion and tour- the municipalities in the zone to obtain staff, support services and ism development shall be forwarded to, and spent by, the munici- assistance in developing and implementing programs to promote pality’s tourism entity, unless the municipality creates a commis- the zone to visitors. sion and forwards the revenue to the commission. (c) 1. If a commission is created by a single municipality, the 8. The governing body of a tourism entity shall include either commission shall consist of 4 to 6 members. One of the commis- at least one owner or operator of a lodging facility that collects the sion members shall represent the Wisconsin hotel and motel room tax described in this section and that is located in the munici- industry. Members shall be appointed under subd. 3. pality for which the room tax is collected or at least 4 owners or 2. a. If the commission is created by more than one munici- operators of lodging facilities that collect the room tax described pality in a zone, the commission shall consist of 3 members from in this section and that are located in the zone for which the room each municipality in which annual tax collections exceed tax is collected. Subdivision 4., as it applies to a commission, $1,000,000, 2 members from each municipality in which annual applies to a tourism entity. tax collections exceed $300,000 but are not more than $1,000,000 (dm) Beginning with the room tax collected on January 1, and one member from each municipality in which annual tax col- 2017, by a municipality that collected a room tax on May 13, 1994, lections are $300,000 or less. Except as provided in subd. 2. b., as described in par. (d) 2., and retained more than 30 percent of the members shall be appointed under subd. 3. room tax collected for purposes other than tourism promotion and b. Two additional members, who represent the Wisconsin tourism development, such a municipality may continue to retain, hotel and motel industry, shall be appointed to the commission by each year, the greater of either 30 percent of its current year reve- the chairperson of the commission, shall serve for a one−year term nues or one of the following amounts: at the pleasure of the chairperson and may be reappointed. 1. For fiscal year 2017, the same dollar amount of the room 3. Members of the commission shall be appointed by the prin- tax retained as the municipality retained in its 2014 fiscal year. cipal elected official in the municipality and shall be confirmed by 2. For fiscal year 2018, the same dollar amount of the room a majority vote of the members of the municipality’s governing tax retained as the municipality retained in its 2013 fiscal year. body who are present when the vote is taken. Commissioners 3. For fiscal year 2019, the same dollar amount of the room shall serve for a one−year term, at the pleasure of the appointing tax retained as the municipality retained in its 2012 fiscal year. official, and may be reappointed. 4. For fiscal year 2020, the same dollar amount of the room 4. The commission shall meet regularly, and, from among its tax retained as the municipality retained in its 2011 fiscal year. members, it shall elect a chairperson, vice chairperson and secre- 5. For fiscal year 2021 and thereafter, the same dollar amount tary. of the room tax retained as the municipality retained in its 2010 5. The commission shall report any delinquencies or inaccu- fiscal year. rate reporting to the municipality that is due the tax. (e) 1. Subject to subd. 2., a district may adopt a resolution (d) 1. A municipality that first imposes a room tax under par. imposing a room tax under par. (a) in an amount not to exceed 3 (a) after May 13, 1994, shall spend at least 70 percent of the percent of total room charges. A majority of the authorized mem- amount collected on tourism promotion and tourism develop- bers of the district’s board may vote that, if the balance in a special ment. Any amount of room tax collected that must be spent on debt service reserve fund of the district is less than the requirement tourism promotion and tourism development shall either be for- under s. 229.50 (5), the room tax imposed by the district under this warded to the commission for its municipality or zone if the subdivision is 3 percent of total room charges beginning on the municipality has created a commission, or forwarded to a tourism next January 1, April 1, July 1 or October 1 after the payment and entity. this tax is irrepealable if any bonds issued by the district and 2. Subject to par. (dm), if a municipality collects a room tax secured by the special debt service reserve fund are outstanding. on May 13, 1994, it may retain not more than the same percentage A room tax imposed by a district under this subdivision applies of the room tax that it retains on May 13, 1994. If a municipality within the district’s jurisdiction, as specified in s. 229.43, and the that collects a room tax on May 1, 1994, increases its room tax proceeds of the tax may be used only for the district’s debt service after May 1, 1994, the municipality may retain not more than the on its bond obligations. If a district stops imposing and collecting same percentage of the room tax that it retains on May 1, 1994, a room tax, the district’s sponsoring municipality may impose and except that if the municipality is not exempt under par. (am) from collect a room tax under par. (a) on the date on which the district the maximum tax that may be imposed under par. (a), the munici- stops imposing and collecting its room tax. pality shall spend at least 70 percent of the increased amount of 2. In addition to the room tax that a district may impose under room tax that it begins collecting after May 1, 1994, on tourism subd. 1., if the district’s only sponsoring municipality is a 1st class promotion and development. Any amount of room tax collected city, the district may adopt a resolution imposing an additional that must be spent on tourism promotion and tourism development room tax. The additional percentage of room tax under this subdi- shall either be forwarded to the commission for its municipality vision shall be equal to the percentage of room tax imposed by the or zone if the municipality has created a commission, or for- sponsoring municipality on the date on which the sponsoring warded to a tourism entity. municipality agrees to stop imposing and collecting its room tax, 3. A commission shall use the room tax revenue that it as described under s. 229.44 (15). A district shall begin collecting receives from a municipality for tourism promotion and tourism the additional room tax imposed under this subdivision on the date development in the zone or in the municipality. on which the sponsoring municipality stops imposing and collect- 4. The commission shall report annually to each municipality ing its room tax. A room tax imposed by a district under this subdi- from which it receives room tax revenue the purposes for which vision applies only within the borders of the sponsoring munici- the revenues were spent. pality and may be used for any lawful purpose of the district. 5. The commission may not use any of the room tax revenue 3. A district adopting a resolution to impose the taxes under to construct or develop a lodging facility. subd. 1. or 2. shall deliver a certified copy of the resolution to the 6. If a municipality issued debt or bond anticipation notes secretary of revenue at least 120 days before its effective date. before January 1, 2005, to finance the construction of a munici- (f) 1. The department of revenue shall administer the tax that pally owned convention center or conference center, nothing in is imposed under par. (a) by a district and may take any action, this section may prevent the municipality from meeting all of the conduct any proceeding and impose interest and penalties. terms of its obligation. 2. Sections 77.51 (12m), (13), (14), (14g), (15a), (15b), and 7. Notwithstanding the provisions of subds. 1. and 2., any (17), 77.52 (3), (3m), (13), (14), (18), and (19), 77.522, 77.523, amount of room tax revenue that a municipality described under 77.58 (1) to (5), (6m), and (7), 77.585, 77.59, 77.60, 77.61 (2), 2019−20 Wisconsin Statutes updated through 2021 Wis. Act 79 and through all Supreme Court and Controlled Substances Board Orders filed before and in effect on October 1, 2021. Published and certified under s. 35.18. Changes effective after Octo- ber 1, 2021, are designated by NOTES. (Published 10−1−21)  Updated 2019−20 Wis. Stats. Published and certified under s. 35.18. October 1, 2021. 66.0615 MUNICIPAL LAW Updated 19−20 Wis. Stats. 86 (3m), (5), (8), (9), (12) to (15), and (19m), and 77.62, as they apply of accommodations to determine the correct amount of room tax to the taxes under subch. III of ch. 77, apply to the tax described due. A determination under this paragraph shall be provided in under subd. 1. writing within 4 years after the due date of the return, unless no 3. From the appropriation under s. 20.835 (4) (gg), the depart- return has been filed. ment of revenue shall distribute 97.45 percent of the taxes col- (b) Enact a schedule of forfeitures, not to exceed 5 percent of lected under this paragraph for each district to that district and the tax under sub. (1m) or par. (c), to be imposed on any person shall indicate to the district the taxes reported by each taxpayer in subject to sub. (1m) who fails to comply with a request to inspect that district, no later than the end of the month following the end and audit the person’s records under par. (a). of the calendar quarter in which the amounts were collected. The (c) Determine the tax under sub. (1m) according to its best taxes distributed shall be increased or decreased to reflect subse- judgment if a person required to make a return fails, neglects or quent refunds, audit adjustments and all other adjustments. Inter- refuses to do so for the amount, in the manner and form and within est paid on refunds of the tax under this paragraph shall be paid the time prescribed by the municipality or district. from the appropriation under s. 20.835 (4) (gg) at the rate under (d) Require each person who is subject to par. (c) to pay an s. 77.60 (1) (a). Any district that receives a report along with a amount of taxes that the municipality or district determines to be payment under this subdivision or subd. 2. is subject to the duties due under par. (c) plus interest at the rate of 1 percent per month of confidentiality to which the department of revenue is subject on the unpaid balance. No refund or modification of the payment under s. 77.61 (5). determined may be granted until the person files a correct room 5. Persons who are subject to the tax under this subsection, if tax return and permits the municipality or district to inspect and that tax is administered by the department of revenue, shall regis- audit his or her financial records under par. (a). ter with the department. Any person who is required to register, (e) Enact a schedule of forfeitures, not to exceed 25 percent of including any person authorized to act on behalf of a person who the room tax due for the previous year under sub. (1m) or par. (c) is required to register, who fails to do so is guilty of a misde- or $5,000, whichever is less, to be imposed for failure to pay the meanor. tax under sub. (1m). This paragraph also applies to a marketplace (g) Sections 77.51 (10), (12m), (13), (13g), (14), (14g), (15a), provider that is required to collect and remit taxes imposed by a (15b), and (17), 77.52 (3), (3m), (13), (14), (18), and (19), 77.522, municipality under sub. (1m), but that fails to file a return as 77.523, 77.53 (7), 77.54, 77.58 (6m), and 77.585, as they apply to required in sub. (1r) or pay the required tax. the taxes under subch. III of ch. 77, shall apply to the tax imposed under par. (a) by a municipality. (2m) (a) To enforce the collection of a room tax imposed by a district under sub. (1m), the district may exchange audit and (1r) (a) A marketplace provider shall collect the tax imposed other information relating to the room tax with the department of by a municipality under sub. (1m) for a marketplace seller, unless revenue. the marketplace provider has been issued a waiver under s. 77.52 (3m) (b) or (c), and forward it to the municipality, on a quarterly (b) To enforce the collection of a room tax imposed by a basis, along with a form prepared by the department of revenue as municipality under sub. (1m), the municipality may jointly described under par. (b), except that a marketplace provider shall inspect and audit the room tax records of a person subject to sub. forward the tax to the municipality more frequently if the market- (1m) with other municipalities only for the purpose of conducting place provider and the municipality enter into a written agreement a joint room tax audit. A municipality may provide audit and other providing for more frequent submissions. The marketplace information to the department of revenue, and may exchange provider shall notify the marketplace seller that the marketplace audit and other room tax related information with any provider has collected and forwarded the taxes described in this municipality that took part in conducting the joint audit. paragraph. A municipality may not impose and collect a room tax (3) The municipality shall provide by ordinance and the dis- from the marketplace seller if the municipality collects the room trict shall provide by resolution for the confidentiality of informa- tax as described in this paragraph. tion obtained under subs. (1r) and (2) but shall provide exceptions (b) The form prepared by the department of revenue as for persons using the information in the discharge of duties described under par. (a) shall contain at least the following imposed by law or of the duties of their office or by order of a information about the room tax imposed under sub. (1m) on the court. The municipality or district may provide for the publishing marketplace provider: of statistics classified so as not to disclose the identity of particular returns. The municipality or district shall provide that persons 1. The total sales for properties located in a municipality with violating ordinances or resolutions enacted under this subsection a room tax. may be required to forfeit not less than $100 nor more than $500. 2. The total number of nights properties located in a (4) (a) Except as provided in par. (d), annually, on or before municipality with a room tax were rented. May 1, on a form created and provided by the department of rev- 3. The rate of the room tax applied to the amount specified in enue, every municipality that imposes a tax under sub. (1m) shall subd. 1. certify and report to the department all of the following: 4. The total tax due for properties located in a municipality 1. The amount of room tax revenue collected, and the room with a room tax. tax rate imposed, by the municipality in the previous year. (c) No later than September 29, 2021, and updated annually, 2. A detailed accounting of the amounts of such revenue that the department of revenue shall create a website that contains the were forwarded in the previous year for tourism promotion and following information about room tax collections: tourism development, specifying the commission or tourism 1. The name and mailing address of each municipality that entity that received the revenue. The detailed accounting shall imposes a room tax under sub. (1m). include expenditures of at least $1,000 made by a commission or 2. The rate of the room tax imposed by each municipality a tourism entity. specified in subd. 1. 3. A list of each member of the commission and each member (2) As a means of enforcing the collection of any room tax of the governing body of a tourism entity to which the municipal- imposed by a municipality or a district under sub. (1m), the munic- ity forwarded room tax revenue in the previous year, and the name ipality or district may do any of the following: of the business entity the member owns, operates, or is employed (a) If a municipality or district has probable cause to believe by, if any. that the correct amount of room tax has not been assessed or that 4. For a municipality subject to sub. (1m) (dm), the amount the tax return is not correct, inspect and audit the records of any of the room tax retained by the municipality in each of the fol- person subject to sub. (1m) pertaining to the furnishing or selling lowing fiscal years: 2010, 2011, 2012, 2013, and 2014. 2019−20 Wisconsin Statutes updated through 2021 Wis. Act 79 and through all Supreme Court and Controlled Substances Board Orders filed before and in effect on October 1, 2021. Published and certified under s. 35.18. Changes effective after Octo- ber 1, 2021, are designated by NOTES. (Published 10−1−21)  Updated 2019−20 Wis. Stats. Published and certified under s. 35.18. October 1, 2021. 87 Updated 19−20 Wis. Stats. MUNICIPAL LAW 66.0617 (b) The department of revenue shall collect the reports land or other appropriate measure, as specified by the munici- described in par. (a) and shall make them available to the public. pality. (c) The department of revenue may impose a penalty of not (2) GENERAL. (a) A municipality may enact an ordinance more than $3,000 on a municipality that does not submit to the under this section that imposes impact fees on developers to pay department the reports described in par. (a). A municipality may for the capital costs that are necessary to accommodate land devel- not use room tax revenue to pay a penalty imposed under this para- opment. graph. The penalty shall be paid to the department of revenue. (b) Subject to par. (c), this section does not prohibit or limit the (d) Notwithstanding the requirement in par. (a) (intro.), the authority of a municipality to finance public facilities by any other information specified in par. (a) 4. may be certified and reported means authorized by law, except that the amount of an impact fee to the department only once if the municipality submits the infor- imposed by a municipality shall be reduced, under sub. (6) (d), to mation not later than May 1, 2022. The department shall make compensate for any other costs of public facilities imposed by the such information available to the public annually in the report municipality on developers to provide or pay for capital costs. described in par. (a) (intro.). (c) Beginning on May 1, 1995, a municipality may impose and History: 1983 a. 189, 514; 1993 a. 263, 467, 491; 1999 a. 9; 1999 a. 150 ss. 565 collect impact fees only under this section. to 567; Stats. 1999 s. 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; 2019 a. 10; 2021 a. 55. (3) PUBLIC HEARING; NOTICE. Before enacting an ordinance A city was authorized to enact a room tax. The gross receipts method was a fair that imposes impact fees, or amending an existing ordinance that and reasonable way of calculating the tax. Blue Top Motel, Inc. v. City of Stevens Point, 107 Wis. 2d 392, 320 N.W.2d 172 (1982). imposes impact fees, a municipality shall hold a public hearing on Under sub. (1m) (am), this section favors expenditures to construct or improve the proposed ordinance or amendment. Notice of the public hear- convention facilities. However, sub. (1m) (am), only addresses when a municipality ing shall be published as a class 1 notice under ch. 985, and shall may impose a room tax rate of greater than 8 percent and is irrelevant when the city has not exceeded that maximum. The only restrictions the rest of the statute places specify where a copy of the proposed ordinance or amendment on the use of room tax monies are found in sub. (1m) (d), which directs a municipality and the public facilities needs assessment may be obtained. to spend a certain percentage on “tourism promotion and development, which means the promotion and development of travel for recreational, business, or educational (4) PUBLIC FACILITIES NEEDS ASSESSMENT. (a) Before enacting purposes. English Manor Bed and Breakfast v. City of Sheboygan, 2006 WI App 91, an ordinance that imposes impact fees or amending an ordinance 292 Wis. 2d 762, 716 N.W.2d 531, 05−1358. that imposes impact fees by revising the amount of the fee or alter- ing the public facilities for which impact fees may be imposed, a 66.0617 Impact fees. (1) DEFINITIONS. In this section: municipality shall prepare a needs assessment for the public facili- (a) “Capital costs” means the capital costs to construct, expand ties for which it is anticipated that impact fees may be imposed. or improve public facilities, including the cost of land, and includ- The public facilities needs assessment shall include, but not be ing legal, engineering and design costs to construct, expand or limited to, the following: improve public facilities, except that not more than 10 percent of 1. An inventory of existing public facilities, including an capital costs may consist of legal, engineering and design costs identification of any existing deficiencies in the quantity or qual- unless the municipality can demonstrate that its legal, engineering ity of those public facilities, for which it is anticipated that an and design costs which relate directly to the public improvement impact fee may be imposed. for which the impact fees were imposed exceed 10 percent of capi- 2. An identification of the new public facilities, or improve- tal costs. “Capital costs” does not include other noncapital costs ments or expansions of existing public facilities, that will be to construct, expand or improve public facilities, vehicles; or the required because of land development for which it is anticipated costs of equipment to construct, expand or improve public facili- that impact fees may be imposed. This identification shall be ties. based on explicitly identified service areas and service standards. (b) “Developer” means a person that constructs or creates a 3. A detailed estimate of the capital costs of providing the new land development. public facilities or the improvements or expansions in existing (c) “Impact fees” means cash contributions, contributions of public facilities identified in subd. 2., including an estimate of the land or interests in land or any other items of value that are cumulative effect of all proposed and existing impact fees on the imposed on a developer by a municipality under this section. availability of affordable housing within the municipality. (d) “Land development” means the construction or modifica- (b) A public facilities needs assessment or revised public facil- tion of improvements to real property that creates additional resi- ities needs assessment that is prepared under this subsection shall dential dwelling units within a municipality or that results in non- be available for public inspection and copying in the office of the residential uses that create a need for new, expanded or improved clerk of the municipality at least 20 days before the hearing under public facilities within a municipality. sub. (3). (e) “Municipality” means a city, village, or town. (5) DIFFERENTIAL FEES, IMPACT FEE ZONES. (a) An ordinance (f) “Public facilities” means all of the following: enacted under this section may impose different impact fees on 1. Highways as defined in s. 340.01 (22), and other trans- different types of land development. portation facilities, traffic control devices, facilities for collecting (b) An ordinance enacted under this section may delineate geo- and treating sewage, facilities for collecting and treating storm graphically defined zones within the municipality and may and surface waters, facilities for pumping, storing, and distribut- impose impact fees on land development in a zone that differ from ing water, parks, playgrounds, and land for athletic fields, solid impact fees imposed on land development in other zones within waste and recycling facilities, fire protection facilities, law the municipality. The public facilities needs assessment that is enforcement facilities, emergency medical facilities and libraries. required under sub. (4) shall explicitly identify the differences, “Public facilities” does not include facilities owned by a school such as land development or the need for those public facilities, district. which justify the differences between zones in the amount of 2. Notwithstanding subd. 1., with regard to impact fees that impact fees imposed. were first imposed before June 14, 2006, “public facilities” (6) STANDARDS FOR IMPACT FEES. Impact fees imposed by an includes other recreational facilities that were substantially com- ordinance enacted under this section: pleted by June 14, 2006. This subdivision does not apply on or (a) Shall bear a rational relationship to the need for new, after January 1, 2018. expanded or improved public facilities that are required to serve (g) “Service area” means a geographic area delineated by a land development. municipality within which there are public facilities. (am) May not include amounts for an increase in service (h) “Service standard” means a certain quantity or quality of capacity greater than the capacity necessary to serve the develop- public facilities relative to a certain number of persons, parcels of ment for which the fee is imposed. 2019−20 Wisconsin Statutes updated through 2021 Wis. Act 79 and through all Supreme Court and Controlled Substances Board Orders filed before and in effect on October 1, 2021. Published and certified under s. 35.18. Changes effective after Octo- ber 1, 2021, are designated by NOTES. (Published 10−1−21)  Updated 2019−20 Wis. Stats. Published and certified under s. 35.18. October 1, 2021. 66.0617 MUNICIPAL LAW Updated 19−20 Wis. Stats. 88 (b) May not exceed the proportionate share of the capital costs hardship that led to the need to adopt a resolution under this sub- that are required to serve land development, as compared to exist- section. For purposes of the time limits in this subsection, an ing uses of land within the municipality. impact fee is paid on the date a developer obtains a bond or irrevo- (c) Shall be based upon actual capital costs or reasonable esti- cable letter of credit in the amount of the unpaid fees executed in mates of capital costs for new, expanded or improved public facili- the name of the municipality under sub. (6) (g). ties. (10) APPEAL. A municipality that enacts an impact fee ordi- (d) Shall be reduced to compensate for other capital costs nance under this section shall, by ordinance, specify a procedure imposed by the municipality with respect to land development to under which a developer upon whom an impact fee is imposed has provide or pay for public facilities, including special assessments, the right to contest the amount, collection or use of the impact fee special charges, land dedications or fees in lieu of land dedications to the governing body of the municipality. under ch. 236 or any other items of value. History: 1993 a. 305; 1997 a. 27; 1999 a. 150 s. 524; Stats. 1999 s. 66.0617; 2005 a. 203, 477; 2007 a. 44, 96; 2009 a. 180; 2017 a. 243. (e) Shall be reduced to compensate for moneys received from An association of developers had standing to challenge the use of impact fees. As the federal or state government specifically to provide or pay for long as individual developers had a personal stake in the controversy, the association could contest the use of impact fees on their behalf. Further, individual developers the public facilities for which the impact fees are imposed. subject to the impact fees do have the right to bring their own separate challenges. (f) May not include amounts necessary to address existing Metropolitan Builders Association of Greater Milwaukee v. Village of Germantown, 2005 WI App 103, 282 Wis. 2d 458, 698 N.W.2d 301, 04−1433. deficiencies in public facilities. Sub. (6) allows a municipality to impose impact fees for a general type of facility (fm) May not include expenses for operation or maintenance without committing itself to any particular proposal before charging the fees. The needs assessment must simply contain a good−faith and informed estimate of the sort of a public facility. of costs the municipality expects to incur for the kind of facility it plans to provide. (g) Except as provided under this paragraph, shall be payable Sub. (9) requires impact fees ordinances to specify only the type of facility for which fees are imposed. A municipality must be allowed flexibility to deal with the contin- by the developer or the property owner to the municipality in full gencies inherent in planning. Metropolitan Builders Association of Greater Milwau- upon the issuance of a building permit by the municipality. Except kee v. Village of Germantown, 2005 WI App 103, 282 Wis. 2d 458, 698 N.W.2d 301, as provided in this paragraph, if the total amount of impact fees 04−1433. Subs. (2) and (6) (b) authorize municipalities to hold developers responsible only due for a development will be more than $75,000, a developer for the portion of capital costs whose necessity is attributable to their developments. may defer payment of the impact fees for a period of 4 years from A municipality cannot expect developers’ money to subsidize the existing residents’ the date of the issuance of the building permit or until 6 months proportionate share of the costs. If impact fees revenues exceed the developers’ pro- portionate share of the capital costs of a project, the municipality must return those before the municipality incurs the costs to construct, expand, or fees to the current owners of the properties for which developers paid the fees. Metro- improve the public facilities related to the development for which politan Builders Association of Greater Milwaukee v. Village of Germantown, 2005 WI App 103, 282 Wis. 2d 458, 698 N.W.2d 301, 04−1433. the fee was imposed, whichever is earlier. If the developer elects When the plaintiff home builders association alleged a town enacted an impact fee to defer payment under this paragraph, the developer shall main- ordinance that disproportionately imposed the town’s costs on development and the tain in force a bond or irrevocable letter of credit in the amount of ordinance contained a mechanism for appealing these issues, but the association did not use it, the circuit court did not erroneously exercise its discretion when it con- the unpaid fees executed in the name of the municipality. A devel- cluded the association should have used the ordinance’s appeal process before bring- oper may not defer payment of impact fees for projects that have ing its claims to court. St. Croix Valley Home Builders Association, Inc. v. Township been previously approved. of Oak Grove, 2010 WI App 96, 327 Wis. 2d 510, 787 N.W.2d 454, 09−2166. The primary purpose of a tax is to obtain revenue for the government as opposed (7) LOW−COST HOUSING. An ordinance enacted under this sec- to covering the expense of providing certain services or regulation. A “fee” imposed tion may provide for an exemption from, or a reduction in the purely for revenue purposes is invalid absent permission from the state to the munici- pality to exact such a fee. A “fee in lieu of room tax” that did not help the city recoup amount of, impact fees on land development that provides low− its investment in a development but rather was a revenue generator for the city that cost housing, except that no amount of an impact fee for which an was collected from the owners of condominiums in a specific development who exemption or reduction is provided under this subsection may be chose not rent their units to the public was imposed without legislative permission and was therefore an illegal tax. Bentivenga v. City of Delavan, 2014 WI App 118, 358 shifted to any other development in the land development in Wis. 2d 610, 856 N.W.2d 546, 14−0137. which the low−cost housing is located or to any other land devel- Rough Proportionality and Wisconsin’s New Impact Fee Act. Ishikawa. Wis. Law. opment in the municipality. Mar. 1995. (7r) IMPACT FEE REPORTS. At the time that the municipality col- 66.0619 Public improvement bonds: issuance. (1) A lects an impact fee, it shall provide to the developer from which municipality, in addition to any other authority to borrow money it received the fee an accounting of how the fee will be spent. and issue its municipal obligations, may borrow money and issue (8) REQUIREMENTS FOR IMPACT FEE REVENUES. Revenues from its public improvement bonds to finance the cost of construction each impact fee that is imposed shall be placed in a separate segre- or acquisition, including site acquisition, of any revenue−produc- gated interest−bearing account and shall be accounted for sepa- ing public improvement of the municipality. In this section, unless rately from the other funds of the municipality. Impact fee reve- the context or subject matter otherwise requires: nues and interest earned on impact fee revenues may be expended (a) “Debt service” means the amount of principal, interest and only for the particular capital costs for which the impact fee was premium due and payable with respect to public improvement imposed, unless the fee is refunded under sub. (9). bonds. (9) REFUND OF IMPACT FEES. Except as provided in this subsec- (b) “Deficiency” means the amount by which debt service tion, impact fees that are not used within 8 years after they are col- required to be paid in a calendar year exceeds the amount of reve- lected to pay the capital costs for which they were imposed shall nues estimated to be derived from the ownership and operation of be refunded to the payer of fees for the property with respect to the public improvement for the calendar year, after first subtract- which the impact fees were imposed, along with any interest that ing from the estimated revenues the estimated cost of paying the has accumulated, as described in sub. (8). Impact fees that are col- expenses of operating and maintaining the public improvement lected for capital costs related to lift stations or collecting and for the calendar year. treating sewage that are not used within 10 years after they are col- lected to pay the capital costs for which they were imposed, shall (c) “Municipality” means a county, sanitary district, public be refunded to the payer of fees for the property with respect to inland lake protection and rehabilitation district, town, city or vil- which the impact fees were imposed, along with any interest that lage. has accumulated, as described in sub. (8). The 10−year time limit (d) “Public improvement” means any public improvement for using impact fees that is specified under this subsection may which a municipality may lawfully own and operate from which be extended for 3 years if the municipality adopts a resolution stat- the municipality expects to derive revenues. ing that, due to extenuating circumstances or hardship in meeting (2) The governing body of the municipality proposing to issue the 10−year limit, it needs an additional 3 years to use the impact public improvement bonds shall adopt a resolution authorizing fees that were collected. The resolution shall include detailed their issuance. The resolution shall set forth the amount of bonds written findings that specify the extenuating circumstances or authorized, or a sum not to exceed a stated amount, and the pur- 2019−20 Wisconsin Statutes updated through 2021 Wis. Act 79 and through all Supreme Court and Controlled Substances Board Orders filed before and in effect on October 1, 2021. Published and certified under s. 35.18. Changes effective after Octo- ber 1, 2021, are designated by NOTES. (Published 10−1−21) Chamber/Travel Superior Net Distributions Chamber Travel Superior 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 ‐ Q1 & Q2 Gross Amount to Chamber/Travel Superior 302,329.61 314,830.57 285,991.97 467,831.58 586,791.56 605,154.02 464,473.43 290,099.34 Distributions to Bong P‐38 Fund (110,876.08) (139,069.60) (143,421.50) (110,080.20) (68,753.54) Distributions to TDF (44,444.00) (55,745.20) (57,489.63) (44,124.98) (27,559.44) Net Amount Kept by Chamber/Travel Superior 312,511.50 391,976.76 404,242.89 310,268.25 193,786.36 Annual Chamber/Travel Superior Hotel/Motel Tax 267,022.44 305,094.29 302,329.61 314,830.57 285,991.97 312,511.50 391,976.76 404,242.89 310,268.25 193,786.36 Average 2012‐2020 321,585.36 Average 2016‐2020 340,998.27