HomeMy WebLinkAbout#06 - Lodging TaxSTAFF REPORT
DATE: October 10, 2017
AGENDA ITEM: Lodging Tax
SUBMITTED BY: Kristina Handt, City Administrator
BACKGROUND:
Council members Fliflet and Lundgren requested this item be placed on the agenda for discussion.
State Statute allows cities to impose a local lodging tax up to 3% on the gross receipts of lodging in the
city. 95% of those funds must be used to fund a local convention or tourism bureau for the purposes of
marketing and promoting the city.
Staff was asked to contact Oakdale to see if they impose this tax. They do not. At this time they
do not have any plans to do it.
ISSUE BEFORE COUNCIL:
Should the city adopt an ordinance imposing a lodging tax?
PROPOSAL DETAILS/ANALYSIS:
Staff was asked to bring this forward for discussion. Items Council could discuss included whether or not
they want to pursue this; how much the tax would be (upto 3%); which convention or tourism bureau would
receive the funds; when would the tax begin, etc.
FISCAL IMPACT:
Staff estimates the lodging tax at 3% could generate $150,000 annually. Of that amount $142,500 or more
would go to a convention or tourism bureau.
OPTIONS:
1)Direct staff to prepare an ordinance to bring to a regular council meeting
2)Identify further questions or concerns to research
3)Do not move forward with pursuing a lodging tax
ATTACHMENT:
MN Stat 469.190