All lodging guests are required to pay the Wisconsin sales and use tax, which is a 5.0 percent tax imposed on the sales price of retailers who sell, license, lease, or rent tangible personal property, certain coins and stamps, certain leased property affixed to realty, or certain digital goods, or sell, license, perform, or furnish taxable services in Wisconsin, including hotels and short-term rentals.

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Likewise, county and city sales tax, which varies by municipality, is paid on all rooms related revenue generated by a hotel. All Wisconsin counties have a 0.5 percent sales tax rate except Waukesha (included in our analysis) and Winnebago Counties, which have no sales tax, and Milwaukee County (included in our analysis), which has a 0.9 percent sales tax. The City of Milwaukee also has a 2.0 percent city sales and use tax.

As demonstrated in the preceding table, all seven municipalities around the City of Mequon where hotels are located have lodging taxes ranging from 5.0 to 8.0 percent.

Exposition tax is imposed on lodging, food and beverage sales, and automobile rentals in municipalities located wholly or partially within Milwaukee County. The exposition tax on lodging in Milwaukee County is currently 3.0 percent.

As the following graph illustrates, the taxes charged by the City of Mequon are the lowest of all surrounding jurisdictions because Mequon does not charge any dedicated lodging tax. The surrounding municipalities all charge a lodging tax rate ranging from 5.0 to 8.0 percent, which results in higher rates compared to Mequon.

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