TOURSIM WORKS FOR US: The history of room tax in Door County…
Why and When…In May of 2007 the Door County Tourism Zone Commission was established out of the hard work from a group of concerned citizens. Studies showed that Door County was losing its market share to other locations in the state; the only way for Door County to remain a sought after destination was to generate money for a broader marketing campaign. The Door County economy has benefited from those efforts with improved national and regional exposure as a result of the establishment of room tax in Door County.
TOURISM WORKS FOR US: What is room tax and who has to pay it?
For the privilege of occupancy in any lodging facilities, each transient is subject to and pays a tax in the amount of 5.5% of the rent charged by each lodging provider. Lodging facilities come in many forms and must be permitted for transient rental. Common examples include: Hotels, motels, B&B’S, cabins, cottages, lodges, homes, condos or rental rooms. This is not an all-inclusive list. The DCTZC evaluates new forms of lodging for permitting requirements as types of lodging continue to develop and change.
Persons renting their lodging facilities must collect the tax from their customer and submit the tax to the Door County Tourism Zone the same way a hotel or motel collects tax from its guests. Property management companies, online travel companies and other third party rental companies are also responsible for collecting the tax. The entity that collects payment for the room is the entity that is responsible for collecting and remitting room tax to the Door County Tourism Zone Commission. The definition of tourists or transients, a person has to be away from his or her permanent address in order to meet the definition. It does not matter if the tourist or transient is there for the season, the month, a week a day or less. If lodging is rented to a tourist or transient, it requires a permit.
TOURISM WORKS FOR US: How is the room tax money used?
In May of 2007 the DCTZC was established with an intergovernmental agreement approving the collection of 5.5% room tax on all lodging. By 2009 all communities were a part of the DCTZC to work together to promote the region as a single destination. The total tax collected is divided three ways:
66% is directed to the contracted entity to use for marketing Door County and increasing overnight stays.
30% goes back to the municipalities in which it was collected for any use deemed necessary by that community’s governmental body.