HomeMy WebLinkAbout11. 19-478 AUGUST 27, 2019 19-478 RESOLUTION
(CARRIED 7-0 LOST LAID OVER WITHDRAWN )
PURPOSE: APPROVE AGREEMENT WITH THE UNIVERSITY OF
WISCONSIN — OSHKOSH FOR PAYMENT IN LIEU OF ROOM
TAX
INITIATED BY: CITY ADMINISTRATION
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the attached Agreement with the University of Wisconsin -- Oshkosh is
hereby approved and the proper City officials are hereby authorized to execute and
deliver the agreement in substantially the same form as attached hereto, any changes in
the execution copy being deemed approved by their respective signatures, and said City
officials are authorized and directed to take those steps necessary to implement the terms
and conditions of the Agreement.
City 4fir
of
Oshkosh
TO: Mayor and Members of the Common Council
FROM: Lynn A. Lorenson, City Attorney
DATE: August 22, 2019
RE: Approve Agreement with the University of Wisconsin— Oshkosh for Payment in
Lieu of Room Tax
BACKGROUND
Room tax is collected by the City on the privilege of furnishing rooms or lodging to transient
persons by hotels, motels, owners of short term rentals, bed and breakfasts and other similar
establishments. Room tax is used to support tourism and tourism development in the City. On
its March 26, 2019 agenda the Council will be asked to consider a resolution approving an
agreement with the University of Wisconsin—Oshkosh for Payment in Lieu of Room Tax.
ANALYSIS
The University at times furnishes rooms and lodging to transient visitors to the City in a manner
similar to hotels, motels and other establishments which collect and pay the City's Room Tax.
When the University is furnishing rooms in a manner similar to a hotel/motel or similar
establishment, the University and the City recognized that there was an issue of fairness relating
to other establishments that are required to collect and remit room tax to the City. The City and
University have worked together to develop an agreement where the University will collect and
remit room tax in these situations when the rental of rooms is similar to other rentals subject to
the City's room tax ordinance.
The agreement recognizes that all provisions of rooms by the University are not similar to hotel
rentals and exempts rooms and lodging provided to those who are participating in University
events or providing services to the University, such as guest lecturers, dignitaries and attendees
at camps or programs put on by the University. We also specifically exempted Badger Girl's
State as an event similar to a camp directly run by the University.
City Hall,215 Church Avenue P.O.Box 1130 Oshkosh,WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
The payment will be 10% of the gross receipts, which is the same rate as the room tax and will
only apply to rentals which would be taxable under the room tax statute. For example,
governmental rentals are exempt from room tax and would also be exempt under the proposed
agreement. A return, similar to the one used for those subject to the room tax will be completed
and will be submitted to the City on a quarterly basis. While room tax is monthly, during most
of the year it is anticipated that there will not be a large number of rentals under the proposed
agreement and the University indicated that it would be easier for their staff if we could
reconcile on a quarterly as opposed to monthly basis. This charge, like room tax, is a pass
through charge to the person renting the room and will not take away from the University's
funding or education mission. The City will collect and distribute the payment in the same
manner we distribute the room tax. The agreement will continue until terminated by either
party.
FISCAL IMPACT
The Agreement will allow the City to collect a payment in lieu of room tax for those rooms
rented from the University in a manner similar to hotel/motel rooms and will correspondingly
increase the City's ability to support tourism and the Oshkosh Area Convention and Visitors
Bureau. Based upon the rental for this year including EAA, the University estimates the
Agreement will generate about$100,000 annually.
RECOMMENDATION
Staff recommends approval of the Agreement.
Res ectfully Submitted, Approved
Lynn . Lorenson Mark A. Rohloff
City Attorney City Manager
City Hall,215 Church Avenue P.O.Box 1130 Oshkosh,WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
AGREEMENT FOR PAYMENT IN LIEU OF ROOM TAX
CITY OF OSHKOSH/UNIVERSITY OF WISCONSIN —OSHKOSH
WHEREAS, the City of Oshkosh has imposed a room tax through Section 8-1.1 of
the Municipal Code on the on the privilege and service of furnishing, at retail, of rooms
or lodging to transients by hotelkeepers, motel operators, lodging marketplaces, owners
of short-term rentals and other persons furnishing accommodations that are available to
the public for the purpose of supporting tourism promotion and tourism development in
the City of Oshkosh; and
WHEREAS, the University of Wisconsin — Oshkosh at certain times during the
year furnishes rooms or lodging at retail to transients in a similar fashion to persons
furnishing accommodations that are subject to the room tax; and
WHEREAS,the room tax helps support the City of Oshkosh and the Oshkosh Area
Convention and Visitors Bureau tourism efforts which provide benefits to the University
including the awarding of grants in support of tourism which the University of Wisconsin
— Oshkosh has been the recipient of in past years, and which the University may apply
for in future years; and
WHEREAS, the University of Wisconsin—Oshkosh wishes to support continuing
efforts to support and enhance tourism and events within the City of Oshkosh through
the collection and remittance of a payment in lieu of room tax from transient visitors
utilizing the University lodging facilities as provided in this Agreement; and
WHEREAS,both parties wish to facilitate the support of tourism in the community
and acknowledge a mutual benefit from this agreement.
NOW, THEREFORE, IT IS HEREBY AGREED by and between the City of
Oshkosh, a Wisconsin Municipal Corporation, 215 Church Avenue, Oshkosh, Wisconsin
54901 (City) and the University of Wisconsin—Oshkosh as follows:
1. Purpose. The parties enter into this Agreement to facilitate a payment in lieu of room
tax by the University of Wisconsin—Oshkosh on the University's privilege and service
of furnishing rooms and lodging at retail to transients in a similar fashion to other
persons furnishing accommodations that are subject to the City's room tax.
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2. Consideration.
The consideration agreed to by the parties is the mutual benefit resulting from the
payment in lieu of the room tax resulting in tourism development and promotion
within the City of Oshkosh and supporting the University, its students, staff and
visitors through the services provided by the Oshkosh Area Convention and Visitors
Bureau and City of Oshkosh which are supported by room tax revenue as described
in the Municipal Code.
3. Obligation/Payments. The University agrees to collect and remit to the City of
Oshkosh a payment in lieu of room tax from persons to whom the University is
furnishing rooms or lodging as transients who are not directly associated with
University educational programs. For purposes of this Agreement lodging directly
associated with University educational programs shall generally mean
accommodations provided to persons that are participating in University functions,
and/or providing services to the University related to its mission and shall specifically
include Badger Girl's State. Such persons are intended to include, but are not limited
to, guest lecturers, dignitaries, workers, guest speakers, attendees at camps or similar
programs operated by the University and exhibitors.
The payment in lieu of room tax shall be in the amount of ten percent (10%) of gross
receipts for lodging.
The payment in lieu of room tax will only be collected from those person/entities who
would be taxable under the room tax provisions of the state statutes. For example,
governmental entities and other persons presenting a tax exempt letter would not be
subject to the payment in lieu of room tax charge.
The payment in lieu of room tax shall be remitted quarterly along with a reporting
form agreed upon by both parties similar to the City's room tax reporting form. The
University shall not be subject to permit requirements, audit,penalties and/or late fees
under the City's short term rental and/or room tax ordinance.
4. Use of Tax Payments. The City shall distribute and use the University's payments in
lieu of room tax in any manner authorized or required by Section 8-1.1 of the
Municipal Code.
5. Term. This Agreement shall begin with lodging furnished on and after January 1,
2020 and shall continue until terminated by either party. Either party may terminate
this agreement for any reason provided the other party is given at least thirty (30)
days written notice. Upon termination, all required payments in lieu of room tax for
those accommodations furnished up to the date of termination shall be paid within
thirty (30) days after termination.
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6. Authority. Each party asserts to the other that it has the authority to enter into this
Agreement. The persons signing this Agreement on behalf of each party assert that
they have the authority to enter into this Agreement on behalf of their respective
entities.
IN WITNESS WHEREOF, the parties heretofore have caused this Agreement to be signed
by the proper persons of each party and their corporate seals, if any, to be hereunto
affixed.
Dated: August 28, 2019
(Signature Pages to Follow)
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UNIVERSITY OF WISCONSIN - OSHKOSH
By:
James Fletcher, Vice Chancellor,
Office of Finance and Administration
STATE OF WISCONSIN )
) ss.
WINNEBAGO COUNTY )
Personally came before me this day of 2019, the above-named James
Fletcher, Vice Chancellor, Office of Finance and Administration, to me known to be the
person(s) who executed the foregoing instrument and to me known to be such officers of
said entity, and acknowledged that he executed the foregoing instrument as such
officer(s) as the deed of said entity, by its authority.
Notary Public, State of Wisconsin
My Commission expires:
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CITY OF OSHKOSH
By: And:
Mark A. Rohloff, City Manager Pamela R. Ubrig, City Clerk
Russell Van Gompel, Director of Finance
STATE OF WISCONSIN )
) ss.
WINNEBAGO COUNTY )
Personally came before me this 28th day of August 2019, the above-named Mark A.
Rohloff, City Manager, and Pamela R. Ubrig, City Clerk, of the City of Oshkosh, a
municipal corporation, to me known to be the persons who executed the foregoing
instrument, and to me known to be such officers of said corporation, and acknowledged
that they executed the foregoing instrument as such officers as the deed of said
corporation, by its authority.
Notary Public, Winnebago Co., WI
My Commission expires/is:
Approved as to Form:
Lynn A. Lorenson, City Attorney
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