Sturgeon Bay. PC: Fox 11 Online
STURGEON BAY, WI (WTAQ-WLUK) — At their meeting Tuesday night, the Sturgeon Bay Common Council gave the green light to a new half-percent sales tax.
It’s called a premier resort area tax, or PRAT, and it will go into effect July 1.
Although the tax will apply to everyone, officials say it won’t target the local population. Instead, it will be on a limited number of items largely related to tourism. Things like groceries and gasoline, for example, will be excluded, but the tax will impact places like restaurants, bakeries, bars and retail stores.
The funds will be used to help pay for aging infrastructure.
In 2018, 70% of voters in Sturgeon Bay approved of the tax on a referendum.
The city has been discussing this idea for nearly 10 years, but hasn’t been able to implement it until now. The 2025-27 Wisconsin biennial budget included a line allowing Sturgeon Bay, along with Minocqua, to use this tax because they met certain criteria.
A political subdivision with a population of not less than 4,000 and not more than 11,000 may enact an ordinance or adopt a resolution declaring itself to be a premier resort area, even if less than 40 percent of the equalized assessed value of the taxable property within the political subdivision is used by tourism-related retailers, if the action is approved by a majority of the electors in the political subdivision voting on the resolution at a referendum held prior to June 1, 2025. The City of Sturgeon Bay and the Town of Minocqua would both qualify to impose a premier resort area tax under this provision. Require a political subdivision that imposes a premier resort area tax under this provision, to reduce its levy limit in the current year by an amount equal to 50 percent of the proceeds of that tax in the previous year, less any prior year reductions associated with this provision. Specify that these provisions take effect on the first day of the first calendar quarter beginning at least 120 days after publication of the bill.
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