Premier Resort Area Tax (PRAT)

 

Minocqua PRAT Brochure:  CLICK HERE

Summarized PRAT Information from WI Department of Revenue:  CLICK HERE

Detailed PRAT information from WI Department of Revenue:  CLICK HERE

What municipalities are already using PRAT?

Lake Delton 1.25%
Wisconsin Dells 1.25%
Bayfield 0.5%
Eagle River 0.5%
Stockholm 0.5%
Rhinelander 0.5%
Sister Bay 0.5% (effective July 1, 2018)
Tomahawk 0.5% (in process)

What businesses (SIC codes) must collect PRAT?  CLICK HERE

What are some business classifications that are NOT subject to collecting PRAT:

Items like cars, boats and equipment, as well as service, are not considered tourism-related sales and therefore would not be subject to PRAT. Refer to the SIC code link above; if not included in that SIC code list, the business is not subject to collecting PRAT. Other excluded classifications not subject to collecting PRAT (this list is not all inclusive):

Animal specialty services (grooming) – SIC 0725
Auto and home supply stores – SIC 5531
Clinics and health practitioners – SIC 8049
Custom upholstery – SIC 5714
Furniture stores – SIC 5712
Grocery stores – SIC 5411
Hardware stores – SIC 5251
Lumber and other building materials dealers (home center stores) – SIC 5211
Meat markets – SIC 5421
Paint, glass, wallpaper stores – SIC 5231
Miscellaneous personal services (e.g. massage, tattoo) – SIC 7299
Radiotelephone communications (cellular phone services) – SIC 4812
Veterinary services – SIC 0742

If PRAT is collected, how will Minocqua compare to other tourist communities when combined with Room tax?

Waupaca:  8% Room Tax + No Prat = 8%
Sheboygan:  8% Room Tax + No Prat = 8%
Bayfield:  6.5% Room Tax + 0.5% Prat = 7%
Green Lake:  7% Room Tax + No Prat = 7%
Lake Delton:  5.5% Room Tax + 1.25% Prat = 6.75%
Wisconsin Dells:  5.5% Room Tax + 1.25% Prat = 6.75
Rhinelander:  5.5% Room Tax + 0.5% Prat = 6%
Boulder Junction:  5.5% Room Tax + No Prat = 5.5%
Eagle River:  4.5% Room Tax + 0.5% Prat = 5%
Three Lakes:  4.5% Room Tax + No Prat = 4.5%
Minocqua:  4% Room Tax + 0.5% Prat = 4.5% (if passed)

Authority & Implementation:

On May 1, 2018, the Minocqua Town Board of Supervisors passed a motion approving a referendum question about Premier Resort Area Tax (PRAT) to be placed on the ballot for the General Election on November 6, 2018. If the referendum passes, it will be considered for approval by the State Legislature and Governor.

The authority for imposing a 0.5% PRAT is pursuant to Wis. Stats. § 66.1113 and §66.1113(2)(j). The purpose of collecting the PRAT is to generate revenues to pay for transportation-related infrastructure as set forth in Wis. Stats. § 66.1113 and § 66.1113(2)(j).

If the Minocqua PRAT Referendum on November 6, 2018, passes it then requires approval by the State Legislature and Governor for final authorization. The earliest anticipated date PRAT could be collected is the first quarter of January, 2020.

Whether a business or service provider needs to collect PRAT is determined by the Wisconsin Department of Revenue’s Standard Industrial Classification code, or “SIC”, based on its primary business activity. See SIC codes link above.

If a seller falls under one of the designated SIC codes making taxable sales in the Town of Minocqua, that seller will self-identify and register with the Department of Revenue to collect and remit the PRAT. If there is a dispute whether a business falls under one of the designated SIC codes, the Department will make a determination.

Premier Resort Area Tax referendum will be on the November 6, 2018, General Election ballot.

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