The "User-Fee" Future: Minocqua’s New Road Strategy
The "User-Fee" Future: Minocqua’s New Road Strategy
The 0.5% Premier Resort Area Tax (PRAT) launching in Minocqua on July 1 is more than a local policy change. It represents a growing trend across the Northwoods: the shift toward a "user-fee" model for infrastructure. For decades, the burden of maintaining roads hammered by millions of visitors fell solely on local property owners. Minocqua’s 2026 strategy aims to balance that equation.
A Blueprint for the Northwoods
Minocqua is following a proven blueprint seen in places like Eagle River and the Wisconsin Dells. By utilizing a specialized state exemption granted in the 2025-27 budget, the town is moving away from total reliance on property taxes to fund its 100-mile road network.
This regional shift coincides with a major change in property rights. On Jan. 21, the Oneida County Board amended short-term rental (STR) ordinances to allow for weekend-only stays. While this increases the earning potential for property owners, it also adds more tires to the pavement. The PRAT ensures that these additional visitors contribute to the upkeep of the very roads they use, from the Island's downtown corridors to the stretches of Highway 51.
The "Sweet Spot" of Infrastructure
For the average resident, $1 million in projected annual PRAT revenue translates to a "sweet spot" of maintenance. This funding allows the town to stay ahead of decay rather than playing catch-up with potholes.
Proactive Paving: The town can now afford to resurface approximately three to five miles of high-traffic road per year.
Property Tax Relief: Every 50 cents collected on a $100 tourist purchase is 50 cents that does not need to be levied against local homeowners.
Preserving the Brand: Quality roads are the backbone of the "Northwoods escape." Smooth asphalt and safe bridges protect the region's reputation as a premier destination, ensuring property values remain high.
What Business Owners Need to Know
This transition requires local action. The tax is not automatic, and the July 1 deadline is firm. Retailers, restaurants, and STR hosts must self-identify and register with the Wisconsin Department of Revenue (DOR).
Who Collects: Most tourism-related businesses, including taverns, hotels, and souvenir shops.
Who is Exempt: Basic necessities like groceries, gasoline, hardware, and auto repair remain exempt, protecting the daily cost of living for year-round residents.
By embracing a consumption-based tax, Minocqua is securing a sustainable future. The town is proving that it is possible to maintain a high-quality environment for visitors without taxing local residents out of their homes.