Ottawa commission authorizes charter step to allow transient guest tax after 61-day protest window

The Ottawa City Commission on Sept. 25 approved a charter-ordinance step that would allow the city to levy a transient guest tax in the future, stopping short of setting a specific rate.

City Manager Silcott presented revenue scenarios and said the charter measure is “the first step of a 2 step process should you desire to proceed with the levying of a transient guest tax,” noting the ordinance only creates the authority up to the statutory limit of 9 percent and that a subsequent simple ordinance would set any actual rate.

Silcott and staff outlined a 61-day public-notice and protest petition window after which the commission could adopt a simple ordinance to establish a rate, and Department of Revenue notification would trigger collections on a schedule set by the commission. Staff provided illustrative revenue estimates at 1%–6% to show potential outcomes; the county currently levies 6%.

Commissioners discussed timing for adoption, the taste for a practical rate (staff recommended considering 3%–6%) and the importance of additional comparative information about neighboring city/county rates before making a final rate decision. Commissioner 15 summarized the legal mechanics and clarified that adopting the charter step would not itself levy the tax: “So, even if we were to vote this in today, we aren't voting in for a specific tax rate,” the commissioner said.

The commission voted unanimously to approve the charter-ordinance step, giving staff authority to move forward with the public-notice period and return with a rate recommendation and implementation timeline for future deliberation.