Premier Resort Area Tax (PRAT)

 

UPCOMING PRAT INFORMATIONAL SESSIONS:

Wednesday, September 26th, at 6:00 P.M.
Thursday, September 27th, at 10:00 A.M.

Informational Sessions Outline

Meetings held at the Minocqua Center (415 Menominee Street, 3rd Floor Board Meeting Room). A representative from Wisconsin Department of Revenue will be present to answer questions.

View Minocqua PRAT Brochure:  CLICK HERE

Summarized Premier Resort Area Tax Information from WI Department of Revenue:  CLICK HERE

Detailed PRAT information from WI Department of Revenue:  CLICK HERE

What municipalities already collect 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% (pending)

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. The referendum is required to receive two-thirds Yes vote to 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 by a 2/3 majority 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.

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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