La Crosse County Looking At New Tourism Tax To Fund Road Projects

La Crosse County is asking voters to consider a new tourism tax as state funding for road maintenance continues to fall short.

The La Crosse County Board approved using an advisory referendum to gauge support for a premier resort area tax last week.

The 0.5 percent sales tax would be applied to places such restaurants and hotels, and be used to help pay for the $88 million road construction needs in the county.

If the referendum passes in April, the county will create a binding referendum and seek voter approval a second time. If approved, the county needs the go-ahead from the state Legislature.

To qualify for such a tax, state law requires a municipality to have 40 percent of its tax base devoted to tourism-related businesses. La Crosse County does not meet that requirement and would need the state Legislature to amend the law, which it has done for four municipalities.

Board chairwoman Tara Johnson said county supervisors were conflicted about whether or not they should go for the tax.

“There was a concern raised that if we do this, then we’re just letting the state off the hook basically,” Johnson said. “This is a primary responsibility of the state – to provide funding for transportation and in particular for road construction and maintenance.”

Johnson said the board ultimately decided the county couldn’t wait for more state funding. The state Department of Revenue estimated such a tax could raise an additional $5.6 million annually in tax revenue.

Gov. Scott Walker announced earlier this month that he’s hoping to increase funding for local road projects in the next state budget. But La Crosse County Highway Commissioner Ron Chamberlain said that investment is not enough.

“I would tell the state, ‘Thank you very much, all increases are appreciated,’ but they’re really not addressing the magnitude of the problem nor the core issue of funding as a whole,” Chamberlain said.

Based on the budget submitted by the state’s Department of Transportation, Chamberlain said La Crosse County could receive $127,000 more in funding.

“That’s less than a fifth-of-a-mile of paving,” Chamberlain said.

Both Chamberlain and Johnson said they don’t know how voters will respond to the proposal.

“I can appreciate the position that people don’t want a new tax or people don’t want to pay new taxes. I think what is missing from that conversation is what is the cost to us as tax payers,” Johnson said. “What’s the cost of continuing to let our infrastructure deteriorate? I hope that’s part of what voters will take into consideration when they go to vote on this issue.”

While six municipalities are currently designated as premier resort areas, La Crosse would be the first county to use the tax.