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The Door County Tourism Zone Commission

The Door County Tourism Zone Commission (DCTZC) is the entity responsible for collecting and distributing room tax to Destination Door County (DDC), Door County's designated tourism marketing entity and municipalities.

      Room Tax Increase

Many permit holders have asked how stays currently being booked for next year will be affected.

Any stay occurring in 2022 or beyond must be taxed at 8.0% regardless of when the reservation, deposit, or stay was paid.

All 2022 bookings will have the 8.0% tax rate applied, regardless of what date the booking occurred. If a booking is made in 2021 for a stay that occurs in 2022, the tax rate will be 8.0%. If there is a stay that spans between December 31, 2021 and January 1, 2022, the stay can be split into two different tax rates. However, any booking with a check-in date past January 1^st will only be taxed at 8.0%.  

      Effective January 1st, 2022, the Door County room tax rate will be increasing from 5.5% to 8.0%. The Door County Tourism Zone is working with marketplace providers such as Airbnb and VRBO to make sure that they are prepared for the increase.

      As we enter the transition period, several changes will take place to adjust to the 8.0% tax. The paper room tax report form and online report form are both being modified to account for this change. Instructions to complete room tax reports with the tax increase will be distributed with the new form to all permit holders in advance of the January 1^st date. Additionally, training sessions will be available for completing room tax reports both through Zoom and by phone.

Our attorney, William Vande Castle, S.C. has worked with the Commission to ratify these changes. If you have any questions about how the room tax reporting will be conducted or how tax will be applied to bookings, please contact Juliana Behme at the Door County Tourism Zone Office. We will be here to support and assist you with these changes. Call (920)854-6200 or email at [email protected] 

Frequently Asked Questions

By now you have probably seen or heard reports that the majority of Door County municipalities have voted to amend the room-tax ordinance and intergovernmental agreement. A portion of this agreement includes an increase in the municipal room tax from 5.5% to 8.0% effective January 1, 2022. As a permit holder, it is important to reach out to you regarding the changes that will take place both now and in the coming months. Please find below a list of common questions permit holders have raised about the room tax change.

I already have bookings made in 2021 for 2022, what tax rate should be charged for these bookings?

Many permit holders have asked how stays currently being booked for next year will be affected. All 2022 bookings will have the 8.0% tax rate applied, regardless of when the booking occurred.

How will I change the room tax collected for my booking method?

In order to prepare for the effective date of the room tax increase, marketplace providers have been contacted to be made aware of the change. The Commission will be working to make sure that room tax is adjusted accordingly and is reflected in site profiles. If you notice after January 1, 2022 that the room tax has not been adjusted on your profile, please contact your marketplace provider and notify the Door County Tourism Zone office. 

Direct booking:

If you book directly, please make sure to adjust your site and advertising to reflect the new tax rate for 2022.

VRBO and Expedia:

VRBO and Expedia have confirmed that bookings made in 2021 will be set at the 8.0% tax rate.

Airbnb:

Airbnb has not responded to any inquiries.

How does the increase affect my reporting?

The paper room tax report form and online report form are both being modified to calculate/reflect the 8.0% room tax. Instructions to complete room tax reports during the transition period will be distributed with the form change to all permit holders in advance of the January 1^st date. Additionally, training sessions will be available for completing room tax reports both through Zoom and by phone.

What happens if I have a booking that includes nights in both December and January?

If there is a stay that spans between December 31, 2021 and January 1, 2022, the stay will be split into two different tax rates. However, any booking with a check-in date past January 1^st will only be taxed at 8.0%. The paper room tax report form and online report form are both being modified to include both the 5.5% tax rate and 8.0% tax rate for these specific bookings. The Door County Tourism Zone office is available to help with any bookings spanning these dates.

I have a property manager; will the Door County Tourism Zone be notifying them about the change?

Property managers will be informed about the room tax and how room tax reporting will be changing in 2022.

The increase in room tax presents an opportunity to improve on what Door County already has to offer while maintaining the environment that visitors and residents enjoy. Our attorney, William Vande Castle, S.C. has worked with the Commission to ratify these changes. If you have any questions about how the room tax reporting will be conducted or how tax will be applied to bookings, please contact Juliana Behme at the Door County Tourism Zone Office. We will be here to support and assist you with these changes. Call (920)854-6200 or email at [email protected]

Please see below a statement from our Attorney, William Vande Castle:

You inquired as to how the Commission should handle rates for bookings that occur prior to the effective date of the room tax rate increase scheduled to take effect January 1, 2022.   Specifically, how should the rates be charged for bookings that occur prior to January 1, 2022.   Essentially, what rate should apply for pre-2022 bookings? 

 

In review, this is an issue that has been dealt with in the past.   The answer here does not come down to the “booking” or the timing of the booking.  Rather, the answer lies in what room rate was in effect when the lodging was used.    Under the provisions of Sec. 66.0615, Stats., the room tax is based on the room rate paid by the transient lodger.   Even if the room is booked in 2021, if the room rate isn’t paid until some date in 2022 when the room is used, the tax would not be due until that room use date in 2022.   The applicable room tax rate would then be the  rate that is in place at the time when the lodging occurred. 

 

I recognize that it is common when making a reservation for the lodging provider to require that the transient lodger provide their credit card information as a deposit. They may even require a non-refundable deposit.   However, all that deposit does, from a contractual standpoint, is to reserve the lodging for the intended future use date.   It is not the lodging itself.   Under the provisions of Sec. 66.0615(1m), Wis. Stats., the tax is applicable to the actual use of the lodging, not its pre-booking.

 

Furthermore, under the Commission’s reporting requirements, the lodging is not reported nor is the collected room tax paid over to the Commission until after the actual lodging has occurred.  The collection and payment of the tax is based on the actual use of the lodging.   Consequently, again, the appropriate tax rate would be the rate that is in place at the time that the lodging is used, not when the lodging was booked or reserved. 

William J. Vande Castle

 

 

 

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Looking for a brief introduction to room tax in Door County? Watch our explainer video below:

 

Did you know that filing your room tax is quick and easy? Click the button below to file online.  Not sure how to login? Contact the office and we would be happy to do a training session or provide you everything you need to file your room tax online. 

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Have questions or need assistance?

The Door County Tourism Zone Commission office is open daily from 8:00 AM to 4:00 PM. 

Please call ahead to schedule a meeting with the Administrator.

 

 

920.854.6200

[email protected]