March 16, 2026
Ms. Kim Tollefson Community Development Director City of Mequon, WI 11333 North Cedarburg Road Mequon, WI 53092
Email: ktollefson@cityofmequonwi.gov
Re: Occupancy/Bed Tax Analysis, Mequon, WI
HOSPITALITY ADVISORY & ASSET MANAGEMENT WASHINGTON, DC | MIAMI | DENVER
1020 N. Fairfax Street Suite 320 Alexandria, VA 22314 Phone: (703) 838-9707
Dear Ms. Tollefson:
In accordance with our proposal, REVPAR International, Inc. was retained by the City of Mequon to conduct desktop research related to the development of an appropriate occupancy/bed tax rate on lodging revenues generated by the three existing hotels and short-term rentals within the City of Mequon, as well as any future lodging units added at a future date.
In response, the following memo summarizes our findings, conclusions, and recommendations relative to the creation of an occupancy/bed tax in Mequon, Wisconsin. These findings and conclusions are based on the market feasibility study completed in November 2025 for the City of Mequon, as well as additional desktop research and analysis on occupancy/bed tax completed in February and March 2026.
Following a review of Wisconsin state law as pertains to sales, use, and lodging taxes for hotels, motels, and other lodging providers, as well as the local taxes paid by area hotels, the following table summarizes the actual taxes paid on hotel stays in Mequon and the surrounding municipalities that offer a variety of lodging products.
| Tax Rates Applicable to Lodging in Mequon and the Surrounding Municipalities | ||||||
| Municipality | State Sales and Use Tax | County Sales and Use Tax | City Sales and Use Tax | Municipal Lodging Tax | Exposition Tax (1) | Total Tax |
|---|---|---|---|---|---|---|
| Ozaukee County | ||||||
| City of Mequon | 5.0% | 0.5% | -- | None | -- | 5.5% |
| Village of Grafton | 5.0% | 0.5% | -- | 7.0% | -- | 12.5% |
| City of Cedarburg | 5.0% | 0.5% | -- | 5.0% | -- | 10.5% |
| Milwaukee County | ||||||
| Village of Brown Deer | 5.0% | 0.9% | -- | 7.0% | 3.0% | 15.9% |
| City of Glendale | 5.0% | 0.9% | -- | 7.0% | 3.0% | 15.9% |
| City of Milwaukee | 5.0% | 0.9% | 2.0% | 7.0% | 3.0% | 17.9% |
| Waukesha County | ||||||
| Menomonee Falls | 5.0% | 0.0% | -- | 8.0% | -- | 13.0% |
| Washington County | ||||||
| Germantown | 5.0% | 0.5% | -- | 6.0% | -- | 11.5% |
Source: State of Wisconsin and various municipalities; compiled by REVPAR International, Inc.
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