Regardless of when a reservation was booked
The new room-tax rate will start Jan. 1, 2022, and the Door County Tourism Zone Commission (DCTZC) – the organization that collects and distributes the money – has been working out the details on paper in preparation for the change.
Part of that process meant nailing down when the lodging customer pays the new rate of 8% versus the current rate of 5.5%. It was thought initially that travelers who booked a reservation this year for a stay next year would be charged this year’s rate of 5.5%. That’s not the case.
The room tax is charged when the stay occurs and the customer checks out. If the stay occurs in 2021, the room tax is 5.5%. If it occurs on or after Jan. 1, 2022, the room tax is 8%. It makes no difference when the reservation was made.
“The statute’s pretty clear,” said Josh VanLieshout, DCTZC board chair. “When the stay is consummated, the sale is transacted, and that’s when you pay [the room tax].”
The room tax is charged to visitors staying in hotels, bed-and-breakfasts, motels and short-term-rental properties.
Sixteen of Door County’s municipalities have backed the increase. The towns of Clay Banks, Forestville and Jacksonport have not finalized decisions. VanLieshout said he expected those three to consider ordinances during meetings this month.