Door County. PC: Fox 11 Online
STURGEON BAY, WI (WTAQ-WLUK) — A new source of revenue for Sturgeon Bay is one step closer to becoming reality.
Plans are moving forward for a sales tax that the city says it would use to help pay for aging infrastructure. However, this new sales tax wouldn’t impact everything, like groceries and gasoline.
“It’s on a limited number of items, largely related to tourism,” said Mayor David Ward.
It’s called a premier resort area tax, or PRAT. It would only be an extra half a percent, and though it would apply to everyone, it isn’t targeting the local population.
“Tourists that use the roads and all the infrastructure, but there’s no mechanism for them to pay for that. Now there is with this premier resort area tax,” said Ward.
The city has been discussing this idea for nearly 10 years, but hasn’t been able to implement it until now. The 2025-27 Wisconsin biennial budget included a line allowing Sturgeon Bay, along with Minocqua, to use this tax because they met certain criteria.
A political subdivision with a population of not less than 4,000 and not more than 11,000 may enact an ordinance or adopt a resolution declaring itself to be a premier resort area, even if less than 40 percent of the equalized assessed value of the taxable property within the political subdivision is used by tourism-related retailers, if the action is approved by a majority of the electors in the political subdivision voting on the resolution at a referendum held prior to June 1, 2025. The City of Sturgeon Bay and the Town of Minocqua would both qualify to impose a premier resort area tax under this provision. Require a political subdivision that imposes a premier resort area tax under this provision, to reduce its levy limit in the current year by an amount equal to 50 percent of the proceeds of that tax in the previous year, less any prior year reductions associated with this provision. Specify that these provisions take effect on the first day of the first calendar quarter beginning at least 120 days after publication of the bill.
In 2018, 70% of voters in Sturgeon Bay approved of the tax on a referendum.
“We clearly heard from our constituents that that’s what they wanted us to do. We just never figured it was going to happen,” said District 3 Alderperson Dan Williams.
In Wisconsin, several other municipalities have this tax:
- Village of Ephraim, effective January 1, 2022
- Village of Sister Bay, effective July 1, 2018
- City of Rhinelander, effective January 1, 2017
- Village of Stockholm, effective October 1, 2014
- City of Eagle River, effective October 1, 2006
- City of Bayfield, effective January 1, 2003
- City of Wisconsin Dells, effective July 1, 1998
- Village of Lake Delton, effective April 1, 1998
Although it’s still not official, the city has planned for this potential revenue in next year’s budget.
“It’s going to take us about six months under the state rules to implement it, but about a half of year is in the budget. It is important. It’s about $400,000 for a half a year,” said Ward.
On Tuesday, the Finance/Purchasing & Building Committee voted to create a new section in the city’s municipal code. The full City Council will have a chance to adopt this new ordinance in January.
Comments