DOOR COUNTY (NBC 26) — NBC 26 first told you about Sturgeon Bay’s Premier Resort Area Tax this past summer. Now, the Common Council has given it the official green light, moving the half-percent charge one step closer to showing up on tourism-related purchases.
The Common Council says the tax will use tourism revenue to support local services and city projects.
Watch below to learn more about the new tax and what purchases it'll impact:
The PRAT tax is a half-percent charge that will appear on tourism-related purchases throughout Sturgeon Bay.
For neighbors like Brandon Umentum, even a half-percent can start to add up over time.
"If you want to go out to eat or do things like that, you’re going to notice it a lot more," Brandon Umentum said, "It seems to target locals who are doing these things year-round, especially this time of year. We’re the ones in and out of the restaurants, the bars, the bowling alleys."
Whether you’re shopping at a clothing store, a variety store, a bookstore or even a confectionery, you’ll notice that half-percent added at the bottom of your receipt.
The tax does not apply to groceries.
City officials weren’t available for an interview, but they estimate it could generate about $400,000 this year, and between $800,000 and $1 million over a full year in 2027.
The funds are planned for street repairs and replacements.
"You know, the tourists pay for it one weekend, whereas the locals are paying this half-percent tax year-round," Umentum said.
According to the Wisconsin Department of Revenue, other Door County communities, including the villages of Ephraim and Sister Bay, already have a half-percent PRAT tax in place.
Sturgeon Bay’s tax is set to go into effect on July 1. Curious about what purchases the PRAT tax covers? The Wisconsin Department of Revenue has a full list available here.
