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Item No. 7D Meeting Date: May 29, 2001 Type of Business: CB WK: Work Session; PH: Public Hearing; CA: Consent Agenda; CB: Council Business City of Mounds View Staff Report To: Mounds View Mayor and City Council From: Aaron Parrish, Economic Development Coordinator Item Title/Subject: Introduction and First Reading of Ordinance 682, an Ordinance Adding Chapter 204 to the Mounds View Municipal Code, Entitled “Local Lodging Tax.” . Date of Report: May 22, 2001 Background: After discussions with local hotel operators, the Economic Development Commission, and the City Council, it was determined that it would be beneficial for the city to participate in the Minneapolis Metro North Convention and Visitors Bureau. To do so, it is necessary for the city to adopt and ordinance establishing a local lodging tax. This ordinance is attached for your review. The following are the significant components of the ordinance: • A tax of 3% of the rent charged by the operator is established. This tax is provided to the city by the lodging operator. • Gives the Finance Director the authority to examine records to ensure compliance with the ordinance. • Makes provisions for the administration of the local lodging tax. • Designates the use of proceeds. Ninety-five percent is designated to fund a convention and visitors bureau, while five percent is undesignated. The Council may designate the remaining five-percent to a different area. However, I would not recommend doing so in ordinance. This is something that can be done on an annual basis in conjunction with the budgetary process. Necessary Actions: Introduction and First Reading of Ordinance 682, an Ordinance Adding Chapter 204 to the Mounds View Municipal Code, Entitled “Local Lodging Tax.” ______________________________________ Aaron Parrish, Economic Development Coordinator (763) 717-4029 Attachment #1: Ordinance 682