Premier Resort Area Designation for Bayfield

The citizens of Northwest Wisconsin request that the legislature adopt SB 411, which would allow the City of Bayfield to be declared a Premier Resort Area (and be able to levy a 0.5% sales tax) notwithstanding the fact that it does not qualify for this designation under current statutes. This bill is sponsored by Senator Jauch and co-sponsored by Representative Sherman.

In 1997, legislation was passed to allow resort communities to enact a 0.5% sales tax on specific types of tourism related sales in order to allow these communities to offset some of their tourism related expenses, provided the municipality met certain conditions.

1. 40% of the equalized value of the taxable property within the municipality or county is used by tourism-related retailers. (21 Industry Codes listed in the Standard Industrial Classification Manual, 1987 Edition have been identified as tourism related retailers).
2. The municipality or county must enact an ordinance or resolution declaring itself to be a "premier resort area".

Following the creation of this legislation, the City of Bayfield applied for the Premier Resort Area designation. It was denied this designation, as it did not meet the specific forty percent commercial requirement ratio. Although Bayfield did not meet the forty percent condition, the City is non the less impacted by tourism the same as Lake Delton and Wisconsin Dells, the two communities that have received this designation.

The City of Bayfield is uniquely located on the coast of Lake Superior. It has been deemed "the Best Little Town in the Midwest" and the "Gateway to the Apostle Islands". Tourism is its number one industry. It is a city of 611 persons, and this population quadruples from May through October. Many non-residents are seeking to purchase second homes, which seriously depletes the housing stock and further limits the City's ability to qualify for many types of funding assistance due to the low year-round population and high-assessed property values. The ability to introduce an additional 0.5% sales tax will allow the city to maintain its police, fire and EMS service, provide adequate sanitary sewer system and clean water, as well as maintain the other infrastructure in the city. The main goal is to provide for and protect the best interests of the residents of the City of Bayfield and those who visit. This goal can be accomplished under a program already created by the state; no additional funding is being requested.