Employment: The Door County Tourism Zone Commission has the following position available: Administrative Assistant
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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 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 1st 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 1st 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]
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
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.
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.