Contact: Meredith Helgerson, Department of Revenue, 608-261-2271
Additional Retailers Subject to Premier Resort Area Tax
MADISON– The Legislature included a provision in the recently passed budget to expand the types of industries and retailers that are subject to the Premier Resort Area Tax, beginning September 1, 2005. The Premier Resort Area Tax is a local retail sales tax authorized by the Wisconsin Legislature in 1997. Proceeds from the Premier Resort Area Tax may only be used by a local government to pay for infrastructure expenses within the jurisdiction of that premier resort area.
There are currently three premier resort areas: Village of Lake Delton, City of Wisconsin Dells and City of Bayfield. In an effort to inform businesses that may be subject to the Premier Resort Area Tax expansion, the Wisconsin Department of Revenue will be sending information to every retailer that reported any taxable sales in the last two years in the counties in which the premier resort areas are located (i.e., Adams, Bayfield, Columbia, Juneau and Sauk counties).
When the Premier Resort Area Tax was initially adopted, only those retailers meeting certain conditions and classified in any one of 21 different Standard Industrial Classification (SIC) codes were subject to this tax. Effective September 1, 2005, industries and retailers classified in any one of 23 additional SIC codes will also be required to register for and remit the 0.5% Premier Resort Area Tax if they meet all of the following conditions:
The retailer must be “engaged in business” in a premier resort area; and The sale, lease or rental of the property or service must have a “situs” (i.e., take place) in the premier resort area; and The retailer is classified in one of the 44 SIC codes listed in sec. 77.994(1), Wis. Stats.
Also within the Legislature’s provision, beginning this past July 27, 2005, manufacturers and wholesalers with a retail outlet are also subject to the Premier Resort Area Tax if their retail outlet, standing by itself, would be classified under one of the 21 initial SIC codes identified in sec. 66.1113, Wis. Stats.
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Jim Doyle Michael L. Morgan
Governor Secretary of Revenue