Standards For Tax Revenue Tougher For WI Nonprofits

Delavan, Wisc.-based nonprofits didn't have to jump through many hoops to get a share of the city's room tax revenue in past years. Organizations would simply request it during a council budgeting meeting and hope for the best.

Things will be significantly different this year. Walworth County Today has reported that nonprofits in Delavan must now prove their events have the potential to fill hotel rooms. The city collected $252,000 in room taxes last year, and statutes state that 17.5 percent of that money must be used for the promotion of tourism activities that will bring money to restaurants and hotels. Therefore, $44,110 will be available for nonprofits this year.

The change in rules for grant eligibility will make the competition for dollars stiffer than ever. It also has the potential to disqualify nonprofits that were eligible for the money in the past. Here's how the new process will work: Organizations must fill out an application and go before a committee that consists of one council member, two hotel industry representatives, local restaurant owners, and others who will have a stake in getting people to the city. The nonprofit will be grilled on many details, including how it will track the success of the event.

This will definitely be a more time-consuming process for nonprofits than in the past, but it will also force them to think more carefully about the events they plan. You can read the full article in Walworth County Today.

Nonprofit Sues Tax Collector Over Public Records Request

A Florida based nonprofit is suing a Palm Beach tax collector for refusing to release public records of a $1.9 million settlement her office reached with over a dozen online travel companies.

The Palm Beach Post reported yesterday that Citizens for Sunshine, a government watchdog group based in Sarasota, Fla., had sent a member to the office of Palm Beach tax collector Anne Gannon to inspect the document, but was denied access by Gannon's staff.  These types of legal settlements are usually considered fair game under public records law, but Gannon's office says it can't release the documents until it notifies the attorneys of the travel companies.

Citizens for Sunshine disagrees, saying the public has a constitutional right to see the documents, and has asked a circuit court judge to order Gannon to release the records.  Additionally, the nonprofit wants reimbursement for their legal fees.  Gannon told The Palm Beach Post that she plans to release the documents on Tuesday.  Additionally, she said she was not aware of the group's initial request.

The documents in question reflect a settlement that ended a lawsuit that Gannon filed in 2009 that alleged that certain travel companies, including Expedia, Orbitz, and Travelocity, were not giving the county all of the tourism taxes they collect from the hotel rooms they book.  The was for $1.9 million, nearly $1.3 million of which will be used to pay tourism-related expenses.

You can read the full story in The Palm Beach Post.