Wisconsin 2019-2020 Regular Session Status: In Committee 1 R cosponsors

SB 646 — Relating to: expanding applicability of the room tax, making substantive and technical changes to the local room tax, and providing a penalty. (FE)

Last action — Failed to pass pursuant to Senate Joint Resolution 1

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed Assembly
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2019-2020 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

165 added · 195 removed

Plain-language change summary

The recent amendment to Senate Bill 646 makes several changes to local room tax regulations. Notably, it removes the previous penalties for marketplace providers that failed to submit room tax returns or payments, instead introducing a new, stricter penalty of up to $500 per day. This change matters because it increases accountability for those facilitating room rentals and aims to ensure municipalities receive their due tax revenue in a timely manner, which can help fund local services and infrastructure.

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- 2020 LEGISLATURE LRBs0288/1 MES/JK/EVM:all SENATE SUBSTITUTE AMENDMENT 1, TO SENATE BILL 646 February 18, 2020 - Offered by Senator LSEN.
- 2020 LEGISLATURE LRB-5052/1 MES:ahe&amn SENATE BILL 646 January 8, 2020 - Introduced by Senators OLSEN , EWLEY and JACQUE , cosponsored by Representatives K ITCHENS, BILLINGS, NOVAK, EMERSON , BOWEN , CONSIDINE, D ITTRICH, UCHOW , DMING , L.M YERS, POPE, RODRIGUEZ , KOWRONSKI , PIROS, SWEARINGEN and T RANEL .
A N A CT to repeal 66.0615 (1) (bs) and 66.0615 (5);
Referred to Committee on Agriculture, Revenue and Financial Institutions.
A N A CT to repeal 66.0615 (1) (bs), 66.0615 (1) (de) and 66.0615 (5);
to amend 66.0615 (1) (de), 66.0615 (1) (dk), 66.0615 (1m) (a), 66.0615 (1m) (g), 66.0615 (2) (intro.), 66.0615 (2) (a), 66.0615 (2) (b), 66.0615 (2) (e), 66.0615 (3), 66.0615 (4) (a) (intro.) and 66.1014 (2) (d) 1.;
to amend 66.0615 (1) (dk), 66.0615 (1m) (a), 66.0615 (1m) (g), 66.0615 (2) (intro.), 66.0615 (2) (a), 66.0615 (2) (b), 66.0615 (4) (a) (intro.) and 66.1014 (2) (d) 1.;
and to create59.25 (3) (e) 1., 59.25 (3) (e) 2., 66.0615 (1) (bt), 66.0615 (1) (bu), 66.0615 (1r), 66.0615 (2m), 66.0615 (4) (a) 4., 66.0615 (4) (d) and 66.1014 (1) (c) of the statutes;
and to create 59.25 (3) (e) 1., 59.25 (3) (e) 2., 66.0615 (1) (bt), 66.0615 (1r), 66.0615 (2) (f), 66.0615 (2m), 66.0615 (4) (a) 4., 66.0615 (4) (d) and 66.1014 (1) (c) of the statutes;
Analysis by the Legislative Reference Bureau This bill expands the applicability of the room tax, makes a number of substantive and technical changes to the local room tax in the areas of collections, audits, and the exchange of information between local governments and the Department of Revenue, establishes a common tax base between the sales tax and the room tax, and authorizes a municipality (city, village, or town) to impose a forfeiture on a marketplace provider (a person who facilitates a retail sale by a seller by listing or advertising, to the extent that the marketplace provider facilitates the LRBs0288/1 - 2020 Legislature - 2 - MES/JK/EVM:all sale or furnishing of rooms, lodging, or other accommodations to transients) that does not timely file a required room tax return to the municipality or pay the required tax.
Analysis by the Legislative Reference Bureau This bill expands the applicability of the room tax, makes a number of substantive and technical changes to the local room tax in the areas of collections, audits, and the exchange of information between local governments and the Department of Revenue, establishes a common tax base between the sales tax and the room tax, and authorizes a municipality (city, village, or town) to impose a forfeiture of up to $500 per day on a marketplace provider (a person who facilitates a retail sale by a seller by listing or advertising, to the extent that the marketplace provider facilitates the sale or furnishing of rooms, lodging or other accommodations to transients) that does not timely file a required room tax return to the municipality - 2020 Legislature - 2 - LRB-5052/1 MES:ahe&amn SENATE BILL 646 or pay the required tax.
The forfeiture may not exceed 25 percent of the room tax due for the previous year or $5,000, whichever is less.
The maximum forfeiture that may be imposed for any year is $45,000, and a forfeiture that is imposed may be appealed to the municipality which imposed it.
The municipality may waive the forfeiture.
Under this bill, for transactions that occur through a marketplace provider, the marketplace provider generally collects any room tax due from a marketplace seller (a seller who sells products through a physical or electronic marketplace operated by a marketplace provider), and forwards it to the municipality on a quarterly basis, along with a form prepared by DOR.
Under current law, to enforce the collection of a room tax imposed by a municipality or district, if such entities have probable cause to believe that the correct amount of room tax has not been assessed or that a room tax return is incorrect, they may inspect and audit the financial records of any person subject to the room tax.
The form prepared by DOR must include the total sales for properties located in a municipality with a room tax, the total number of nights such properties were rented, the room tax rate, and the total tax collected.
Under the bill, to perform such room tax enforcement, a municipality or district may inspect and audit tax-related records of a person subject to the room tax.
Annually, beginning before July 31, 2020, DOR is required to post on its website the name of each municipality that imposes a room tax, and the rate of each room tax.
In addition, the bill repeals the probable cause component.
Under current law and the bill, to enforce the collection of a room tax imposed by a municipality or district, if such entities have probable cause to believe that the correct amount of room tax has not been assessed or that a room tax return is incorrect, they may inspect and audit the financial records of any person subject to the room tax.
Under current law, a person who fails to comply with a request to inspect and audit such records is subject to a forfeiture not exceeding 5 percent of the room tax imposed or 5 percent of what the municipality or district determines the room tax should be, according to its best judgment.
Under the bill, this same forfeiture may be imposed on a marketplace provider if the municipality or district has made three requests to inspect and audit the requested records and the marketplace provider fails to respond or comply with the request.
Clarifies that persons who are subject to the room tax must file a room tax return in the manner and form, and within the time, prescribed by a municipality.
The municipality may require such persons to provide certain specific information with the return.
4.
For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.
LRBs0288/1 - 2020 Legislature - 3 - MES/JK/EVM:all SECTION 1 SECTION 1.
SECTION 1.
all of(3).
70.09 (3).
the following:
all of the following:
59.25 (3) (e) 1.
LRB-5052/1 - 2020 Legislature - 3 - MES:ahe&amn SECTION 2 SENATE BILL 646 59.25 (3) (e) 1.
66.0615 (1) (bu) of the statutes is created to read:
66.0615 (1) (de) of the statutes is repealed.
66.0615 (1) (bu) “Marketplace seller” has the meaning given in s.
77.51 (7j).
66.0615 (1) (de) of the statutes is amended to read:
66.0615 (1) (de) “Occupant” means a person who rents a short-term rental through a lodgingarketplace provider.
SECTION 8.
66.0615 (1) (dk) “Short-term rental” means a residential dwelling that is offered for rent for a fee and for fewer 30 consecutive days.
66.0615 (1) (dk) “Short-term rental” means a residential dwelling that is offered for rent for a fee and for fewer than 29ecutive days.
SECTION 9.
SECTION 8.
LRBs0288/1 - 2020 Legislature - 4 - MES/JK/EVM:all S ECTION 9 66.0615(1m) (a) The governing body of a municipality may enact an ordinance, and a district, under par.
66.0615(1m) (a) The governing body of a municipality may enact an ordinance, and a district, under par.
A tax imposed under this paragraph by a municipality shall be paid to the municipality and, with regard to any tax revenue that may not be retained by the municipality, shall be forwarded by the municipalityto a tourism entity or a commission if one is created under par.
A tax imposed under this paragraph by a municipality shall be paid to the - 2020 Legislature - 4 - LRB-5052/1 MES:ahe&amn SENATE BILL 646 SECTION 8 municipality and, with regard to any tax revenue that may not be retained by the municipality, shall be forwarded by the municipality to a tourism entity or a commission if one is created under par.
(am), a tax imposed under this paragraph by a municipality may not exceed 8 percent of the sales pricecept as provided in par.
(am), a tax imposed under this paragraph by a municipality may not exceed 8 percent of the sales priceept as provided in par.
(am), if a tax greater than 8 percent of the sales priunder this paragraph is in effect on May 13, 1994, the municipality imposing the tax shall reduce the tax to 8 percent, effective on June 1, 1994.
(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 the tax shall reduce the tax to 8 percent, effective on June 1, 1994.
S ECTION 10.
SECTION 9.
S ECTION 11.
SECTION 10.
LRBs0288/1 - 2020 Legislature - 5 - MES/JK/EVM:all SECTION 11 66.0615 (1r) (a) A marketplace provider shall collect the tax imposed by a municipality under sub.
66.0615 (1r) Persons who are subject to the tax imposed by a municipality under sub.
(1m) for a marketplace seller, unless the marketplace provider has been issued a waiver under s.
(1m) shall file returns in the manner and form, and within the time, prescribed by the municipality.
77.52 (3m) (b) or (c) and forward it to the municipality, on a quarterly basis, along with a form prepared by the department of revenue as described under par.
The municipality may also require such persons to include with the person's return the following information about the property subject to the room tax:
(b).
(a) The address of each property.
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The marketplace provider shall notify the marketplace seller that the marketplace provider has collected and forwarded the taxes described in this paragraph.
(b) The total sales for each property.
A municipality may not impose and collect a room tax from the marketplace seller if the municipality collects the room tax as described in this paragraph.
(c) The total tax collected for each property.
(b) The form prepared by the department of revenue as described under par.
(d) The number of nights each short-term rental was rented.
(a) shall contain at least the following information about the room tax imposed under sub.
SECTION 11.
(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 collected for properties located in a municipality with a room tax.
(c) Before July 31, 2020, and updated annually, the department of revenue shall create a website 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.
S ECTION 12.
LRBs0288/1 - 2020 Legislature - 6 - MES/JK/EVM:all SECTION 12 66.0615 (2) (intro.) As a means of enforcing the collection of any room tax imposed by a municipality or a district under sub.
LRB-5052/1 - 2020 Legislature - 5 - MES:ahe&amn SECTION 11 SENATE BILL 646 66.0615 (2) (intro.) As a means of enforcing the collection of any room tax imposed by a municipality or a district under sub.
SECTION 13.
SECTION 12.
66.0615 (2) (a) If a municipality or district 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 financialrds of any person subject to sub.
66.0615(2) (a) Ifa municipality or district has probable cause to believe that the correct amount of room tax has not been assessed or that the tax return is not correct, may inspect and audit the financial records of any person subject to sub.
(1m) pertaining to the furnishing or selling of accommodations to determine whether the correct amount of room tax is assessed and whether any room tax return is correct due.
(1m) pertaining to the furnishing or sellingcommodations to determine whether the correct amount of room tax is assessed and whether any room tax return is correct due.
SECTION 14.
SECTION 13.
(1m) who fails to comply with a request to inspect and audit the person's financial records under par.
(1m) who fails to comply with a request to inspect and audit the person's financial under par.
SECTION 14.
66.0615 (2) (f) of the statutes is created to read:
66.0615 (2) (f) A marketplace provider that is required to collect and remit taxes imposed by a municipality under sub.
(1m) (a), but fails to file a return as required in sub.
(1r) or pay the required tax, may be subject to a forfeiture of $500 for each day a return is not filed or the tax is not paid.
The total amount of forfeitures that may be imposed by a municipality may not exceed $45,000 for any year in which a required return is not filed or required tax is not remitted.
A forfeiture imposed - 2020 Legislature - 6 - LRB-5052/1 MES:ahe&amn SENATE BILL 646 SECTION 14 under this paragraph may be appealed to the municipality, which may waive the forfeiture.
66.0615 (2) (e) of the statutes is amended to read:
66.0615 (2) (e) Enact a schedule of forfeitures, not to exceed 25 percent of the room tax due for the previous year under sub.
(1m) or par.
(c) or $5,000, whichever is less, to be imposed for failure to pay the tax under sub.
(1m).
This paragraph applies to a marketplace provider that is required to collect and remit taxes imposed by a municipality under sub.
(1m), but that fails to file a return as required in sub.
(1r) or pay the required tax.
SECTION 16.
LRBs0288/1 - 2020 Legislature - 7 - MES/JK/EVM:all S ECTION 16 66.0615 (2m) (a) To enforce the collection of a room tax imposed by a district under sub.
66.0615 (2m) (a) To enforce the collection of a room tax imposed by a district under sub.
SECTION 17.
SECTION 16.
66.0615 (3) of the statutes is amended to read:
66.0615 (3) The municipality shall provide by ordinance and the district shall provide by resolution for the confidentiality of information obtainedsubs.r sub.
(1r) and (2) but shall provide exceptions 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.
The municipality or district may provide for the publishing of statistics classified so as not to disclose the identity of particular returns.
The municipality or district shall provide that persons violating ordinances or resolutions enacted under this subsection may be required to forfeit not less than $100 nor more than $500.
SECTION 18.
(1m) shall certify and report to the department, beginning in 2017,l of the following:
(1m) shall certify and report to the department, beginning in 2017, all of the following:
SECTION 19.
SECTION 17.
LRBs0288/1 - 2020 Legislature - 8 - MES/JK/EVM:all SECTION 19 66.0615 (4) (a) 4.
66.0615 (4) (a) 4.
SECTION 20.
SECTION 18.
The department shall make such information available to the public annually in the report described in par.
LRB-5052/1 - 2020 Legislature - 7 - MES:ahe&amn S ECTION 18 SENATE BILL 646 The department shall make such information available to the public annually in the report described in par.
SECTION 21.
SECTION 19.
SECTION 22.
SECTION 20.
SECTION 23.
SECTION 21.
If a residential dwelling is rented for periods of more than 6 but fewer than 29 30 consecutive days, a political subdivision may limit the total number of days within any consecutive 365-day period that the dwelling may be rented to no fewer than 180 days.
If a residential dwelling is rented for periods of more than 6 but fewer than 2930 consecutive days, a political subdivision may limit the total number of days within any consecutive 365-day period that the dwelling may be rented to no fewer than 180 days.
SECTION 24.0Effective dates.
SECTION 22.0Effective date.
This act takes effect on January 1, 2021, except as follows:
(1) This act takes effect on the first day of the 3rd month beginning after publication.
LRBs0288/1 - 2020 Legislature - 9 - MES/JK/EVM:all SECTION 24 (1) The creation of s.
66.0615 (1r) (c) takes effect on the day after publication.
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Action History

  1. Failed to pass pursuant to Senate Joint Resolution 1

  2. Available for scheduling

  3. Report passage as amended recommended by Committee on Agriculture, Revenue and Financial Institutions, Ayes 9, Noes 0

  4. Report adoption of Senate Substitute Amendment 1 recommended by Committee on Agriculture, Revenue and Financial Institutions, Ayes 9, Noes 0

  5. Executive action taken

  6. Senate Substitute Amendment 1 offered by Senator Olsen

  7. Senator L. Taylor added as a coauthor

  8. Public hearing held

  9. Fiscal estimate received

  10. Read first time and referred to Committee on Agriculture, Revenue and Financial Institutions

  11. Introduced by Senators Olsen, Bewley and Jacque; cosponsored by Representatives Kitchens, Billings, Novak, Emerson, Bowen, Considine, Dittrich, Duchow, Edming, L. Myers, Pope, Rodriguez, Skowronski, Spiros, Swearingen and Tranel

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3 sponsors · 0 co-sponsors · 129 not signed on

Sponsors (3)

Co-sponsors (0)

None.

Not signed on (129)

129 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

Who sponsors SB 646?
SB 646 is sponsored by Olsen, Bewley, and Jacque, André (Republican).
What is the current status of SB 646?
This bill died with 2019-2020 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
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