Re: Museum's use of City Room Tax question

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Roy Ostenso (ostensor@sbcglobal.net)
Fri, 18 May 2018 12:46:05 +0000 (UTC)



Date: Fri, 18 May 2018 12:46:05 +0000 (UTC)
From: Roy Ostenso <ostensor@sbcglobal.net>
Message-ID: <1280485526.2770487.1526647565976@mail.yahoo.com>
Subject: Re: Museum's use of City Room Tax question

Regarding Room TAX.I served on the Tourism Commission for the City of Menom onie for 10 years. Over this time the State Statute governing room tax has evolved to its present form (I have been off the commission since January, so there may have been other changes). The Statute is very clear on how the
 collected room tax can be spent. First the local government units (or coll ection of units) can keep 30% for the general fund. The balance is usually controlled by a government formed Commission. This "Tourism" Commission can
 directly spend or award all or part of the remainder to a qualified Destin ation Marketing Organization (DMO) , such as a Chamber of Commerce or Conve ntion and Visitors Bureau (CVB). While the Statute has many details the fundamental purpose is the following
 statement.The Statute states this 70% portion of the money has to be spend
 on the promotion and development of tourism with the likelihood of increas ing overnight stays. Generally this means one day events would not qualify.
 However, there is many interpretations of " the promotion and development of tourism ... ." What is development and what is promotion? I liked to def ine development as the process and activities which will likely increase ov ernight stays in the future. Whereas promotion will likely increase overnig ht stays more immediately. For example, it is generally conceded expenditur es enhancing the visitor experience (directional signage, banners, etc) qua lifies as development. Supporting a two day event would qualify as an accep table promotion expenditure. Further, the statute only allows room tax money to fund a convention center
 or visitor center. The local government's 30% could be. In Menomonie the c ity award an annual stipend to the Mabel Tainter Center for the Arts for th e general fund. Without the 30% from the room tax they may not be as genero us. BTW, some communities were grand-fathered in on their existing distribu tion percentages. However, they all had to eventually change to the 30/70 f ormula. In Menomonie the Chamber is contracted to be the tourism entity (DMO). They
 do give grants to local groups for events and other tourism related activi ties. Contact Jody Hagmann for more information. The Dept of Tourism could give you more information. The Wisconsin Hot el & Lodging Association is another source.I strongly suggest historical so cieties trying to promote visitors their museum attend the annual Wisconsin
 Governor's Conference on Tourism (WisGOT), https://eventegg.com/wigcot/.

Roy Ostenso 715-505-1110

      From: FAHP <fahp@centurytel.net>
 To: localhistory@listserve.uwec.edu
 Sent: Wednesday, May 16, 2018 3:07 PM
 Subject: Re: Museum's use of City Room Tax question
    We aren't receiving funds from the city's room tax.  I'm guessing that
 our county tourism coalition receives it. Joanie McKeown,Burnett County Historical Societyat Forts Folle Avoine Histo rical Park From: "Seymour, Janet I - WHS" <janet.seymour@wisconsinhistory.org> To: localhistory@listserve.uwec.edu Sent: Tuesday, May 15, 2018 12:35:29 PM Subject: Fwd: Museum's use of City Room Tax question

_____________________________ From: tomahmuseum@charter.net Sent: Monday, May 14, 2018 4:37 PM Subject: Museum's use of City Room Tax To: JANET IRENE SEYMOUR <janet.seymour@wisconsinhistory.org>

Janet, Would you please send this out to the other Historical Societies and Museum
's in the State? How many of you are receiving funds from your city's Room Tax?  (which
 is supposed to be used only by non-profits and to be used exclusively for tourism) We are building a new museum and it was suggested that we should approach o ur City Council to see if we could obtain a share of the City's Room Tax.
  We we turned down, as was the local Area Community Theatre who also asked for funding for their building project.  We we told that 51% of our expenses had to go directly for tourism and that we did not fit that ca tegory according to State Statues and do not qualify according to our City Administrator, the City Council immediately voted us both down.  The C ity Chamber of Commerce Tourism and Vistor's bureau gets the entire amount each month. 

Thanks for you comments. Jim

   



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