Wausau committee approves amendments to room tax ordinance to align with state rules and marketplace providers

The Wausau Finance Committee on June 10 approved amendments to Chapter 3.25 of the Wausau Municipal Code (room tax) to simplify reporting deadlines, reduce penalties to conform with state law, and incorporate rules that apply to marketplace providers such as online travel agencies.

Mary Anne (staff) told the committee the existing ordinance "was very confusing as far as when people don't either submit a report or, don't submit payment timely" and that the prior penalties exceeded what state statute allows. She said new state rules now address marketplace providers that collect room tax on behalf of hotels and that the city ordinance will be updated to align with the state statute and avoid excessive penalties.

Alder Henke moved approval; Alder Tierney seconded. The committee approved the amendment on a voice vote.

Why it matters: the change aims to clarify reporting and collection responsibilities for hotels and third-party market platforms ("aggregator websites") and to ensure Wausau's local penalties comply with state law. Staff said the amendment will help improve timely collections under the current legal framework.

Discussion and details: staff referenced marketplace providers (examples given included Travelocity and other aggregator websites) and noted the amendments will align local penalties and interest with state statute. The amendment packet was included in the committee materials; no additional fiscal impact figures were provided in the discussion.