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 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, is considered a person who is away
from his or her permanent address and renting lodging at a temporary
address. 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.
ROOM TAX IS A PASS THROUGH TAX SIMILAR TO SALES TAX. MEANING,
THE CUSTOMER PAYS IT, YOU COLLECT AND REMIT IT THROUGH YOUR
REPORTING.
WHO HAS TO COLLECT?
