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Council discusses increasing hotel tax to fund heritage foundation; ballot timing, hotel study noted
Summary
Council members discussed whether to raise the local hotel/motel tax (currently 5%) to match higher rates in larger cities and to fund a proposed Heritage Foundation; staff will complete a hotel study and council discussed placing a measure on the November ballot with an August deadline.
Council members discussed a possible ballot proposal to raise the local hotel/motel tax from the current 5 percent to a higher rate to help fund a proposed Heritage Foundation.
A council member noted that Le Mars’ current rate is 5 percent and compared it to Des Moines at 7 percent, asking whether the city should consider a similar increase and whether the tax would deter visitors. Another council member said the tax is mostly paid by out-of-town visitors and advocated placing any proposed increase on a November ballot so voters could decide.
Council members discussed timing: a staff comment indicated a 30- to 40-day lead time to place an item on a November ballot and recommended aiming for an August deadline to complete necessary paperwork. The council also noted a pending hotel study that staff said should be completed and would inform any final proposal on rates or ballot language.
Separately, a council member proposed establishing quarterly town-hall meetings; the council agreed staff would propose dates and return with a schedule. The meeting record does not show a formal vote to increase the hotel tax; it records council direction to pursue study and to return with options and timelines.
The meeting concluded with a motion to adjourn that was seconded; council members approved by voice vote and the meeting was adjourned.
