Wisconsin Court of Appeals
Tax — fee in lieu of room tax
A city cannot impose taxes on condominium owners who choose not to rent out their properties.
“The fact that the ‘fee in lieu of room tax’ is imposed by contract does not change its character or provide the City with the authority to impose such a tax. See Milwaukee& Suburban Transp., 6 Wis. 2d at 311-12. In short, the ‘fee in lieu of room tax’ is a revenue generator for the City that is imposed on a certain class of residents without legislative permission and is therefore illegal. See id. at 306. The court’s award of summary judgment to the City is reversed, and the cause is remanded for further proceedings consistent with this opinion.”
Reversed and Remanded.
Recommended for publication in the official reports.
Dist. II, Walworth County, Koss, J., Reilly, J.
Attorneys: For Appellant: Williams, David C., Lake Geneva; For Respondent: Koch, Steven A., Elkhorn