Room tax proposal met with opposition

By Todd Krysiak, Sauk Prairie Eagle

The lone business owner to be affected by a proposed Sauk City "room tax" opposes a new plan intended to fund programs aimed at luring tourists to the area.

Cedarberry Inn owner Ken Myers said he didn't believe the tax, 70 percent of which must be used to promote tourism, would benefit his business.

"The simple fact is a majority of our visitors are not tourism driven," he said during the board's regular meeting Nov. 25. "A majority of our customers are business travelers or here for public or private events."

Myers attended the meeting after village officials told him about the agenda item and invited him to comment on it. Myers said he researched the idea and does not believe other Wisconsin cities that have enacted a room tax saw an increase in occupancy.

"If you look at Baraboo, the revenues are going somewhere that isn't putting heads in beds," the owner of the 44-room inn said, pointing out that this year Baraboo sought to increase its room tax from 5 to 8 percent. "Instead of bringing in more money, people stay shorter, less often and may skip supper or lunch to defray the extra costs."

Sauk Prairie Area Chamber of Commerce Executive Director Leslie Bruner said the chamber thinks the tax would be useful to promote everything Sauk Prairie has to offer.

"It's primarily so we have some kind of marketing dollars," Bruner said. "It would be used to generally promote the area."

The tax would apply to any business that boards people on a per-night basis, though presently only the Cedarberry Inn fits that definition.

"It's a tough time to ask our visitors to pay more," Myers said.

The village's plan commission and full board have not decided how much to seek if they choose to impose such the tax. State law allows up to an 8 percent tax.

When making cuts to its proposed budget to fall within state-mandated levy limits, the village axed $7,750 from the budget requests of the Chamber and the Sauk City Historic Preservation Committee. The village planned to restore those funds through revenue generated by the room tax, though Bruner said the cut program the Chamber requested funds for would not fall within the tourism requirement.

Not all of the village board members appeared ready to support the proposal.

"I have a hard time with one guy throwing the party by himself," board member John Schmidt said about the proposed new tax. Schmidt also questioned how the actual percentage rate would be determined.

Myers also said the additional tax most directly would cost him as a result of credit card fees, which are based upon the total amount of a charge and would increase through the new tax. Myers said the increase in credit card fees would come directly out of his bottom line.

The village plan commission is scheduled to meet with representatives from the Chamber to discuss the tax Dec. 9 during its regular meeting.