Under the room tax law, must a tourism commission contract with an existing tourism entity exclusively for tourism marketing services or may it also contract with other organizations for tourism marketing services? 

A tourism commission may contract with other organizations for tourism marketing services in addition to a tourism entity located within the community.   Nothing in the room tax law prohibits a tourism commission from contracting with other organizations in addition to the local tourism entity for tourism marketing services.    

Under the room tax law municipalities have always had the option of creating a tourism commission to oversee the spending of room taxes collected by the municipality.  2015 Act 55 requires municipalities, beginning January 1, 2017, to forward the 70 percent of room tax revenue required to be spent on tourism promotion and tourism development to a tourism entity or a tourism commission.  Under prior law, municipalities had the option of forwarding room tax revenues to tourism entities or tourism commissions, but were not required to do so.  

The provisions in the room tax law relevant to your question are set out below:

Sec. 66.0615(1m)(b)1. provides that  “If a single municipality imposes a room tax under par. (a), the municipality may create a commission under par. (c). The commission shall contract with another organization to perform the functions of a tourism entity if no tourism entity exists in that municipality.”

Sec. 66.0615(1m)(d)3. states that   “A commission shall use the room tax revenue that it receives from a municipality for tourism promotion and tourism development in the zone or in the municipality.”

Sec. 66.0615(1)(fm) defines “tourism promotion and tourism development” to mean:
“any of the following that are significantly used by transient tourists and reasonably likely to generate paid overnight stays at more than one establishment on which a tax under sub. (1m) (a) may be imposed, that are owned by different persons and located within a municipality in which a tax under this section is in effect; or, if the municipality has only one such establishment, reasonably likely to generate paid overnight stays in that establishment:
1. Marketing projects, including advertising media buys, creation and distribution of printed or electronic promotional tourist materials, or efforts to recruit conventions, sporting events, or motorcoach groups.
2. Transient tourist informational services.
3. Tangible municipal development, including a convention center.”

Under these statutes a tourism commission must use room tax revenue for tourism promotion and tourism development and must contract with a tourism entity or, if none exists, another organization to market the community to tourists and other travelers. It seems fairly clear that if a tourism entity exists within the community the commission must contract with it for tourism marketing services.  However, nothing in the room tax law suggests that a commission must exclusively contract with the existing tourism entity for tourism marketing services.  A tourism commission’s sole purposes is to use room tax revenues for tourism promotion and tourism development.  If the commission believes that goal is best accomplished by working with other organizations in addition to the existing tourism entity for promoting the community to tourists, nothing in state law precludes it from making that decision.