Earlier this week the Wisconsin Dells Finance Committee requested that additional research be given to determining the fee amount from timeshares. This fee would be charged due to the fact that timeshares do not pay the premier resort and room tax.
 
City Clerk and Treasurer Dale Darling was given the task of calculating how much each hotel room takes in for taxes and report his findings at the next conference. The committee plans to use this data to figure out a way to collect a similar percentage from timeshare properties.
 
An example from Mayor Eric Helland put it this way: a $2000 fee per room would be calculated from a $142 room rate at 70% yearly occupancy. $142/day x 365 days x 70% (occupancy) x 5.5% tax = $1995.46. The fee would translate into $38.46 weekly.
 
Some debate on the accuracy of the calculations occurred between the members of the committee. Alderperson Gavinski pointed out that the rates were currently dropping due to an increase in the number of units available. Public Works Director Horkan brought up the fact that financial predictions are usually calculated with a 50% occupancy estimate, not 70%.
 
Helland defended his example by stating that establishing guidelines is the priority, in order to provide information to individuals for future proposals, all the other details can be worked out.
 
Alderperson Ed Wojnciz commented that the city should be looking at the fee as a replacement for the tax they would receive if the timeshare were instead a hotel. Helland refuted this by stating that the fee is not intended as a replacement to the room tax, only as a replacement for what the money is meant for. "There's no reason to make (developers) not do the project, but we don't want to give it away either."
 
In any case, Alderperson and Chairman Joan Ragan announced that the fee would need bi-annual review to ensure its adequacy.
 
City Attorney Hasler feels the fee should consist of a flat rate that would fluctuate with the consumer price index.
 
The committee also discussed the possibility of allocating some of the funds for the Wisconsin Dells Visitor and Convention Bureau. While they don't currently get any of the resort tax money, they do receive 90 percent of the room tax from hotels, motels, etc. Gavinski feels it is only fair to send some of the fees to the bureau since they are responsible for the marketing that brings people into the Wisconsin area.