By Tim Kowols
Sturgeon Bay would be just one of seven municipalities in the entire state if it chose to institute a premier resort area tax on retail purchases to address its road maintenance needs. Rhinelander recently joined Stockholm, Eagle River, Bayfield, Wisconsin Dells, and Lake Delton in using the tax, which ranges between 0.5 and 1.25 percent on certain retail sales. For Stockholm, the tax goes to fund public improvement projects in the village of just 66 people but turns into one of the premier shopping destinations in the state during the summer. Village President John Myklehurst says the tax was pushed for by its local merchants’ association and has been a great tool to raise extra funds for Stockholm.
Myklehurst says the village collected $10,000 in taxes during its second year of its implementation. According to the Wisconsin Department of Revenue, a sponsoring municipality must have at least 40% of its equalized assessment values used by tourism-related retailers in order to enact a premier resort area tax ordinance.