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`Christmas Tree' has CR Ornament

Mar. 22, 2010 4:03 pm
The standings bill is here, the standings bill is here.
The DM Register's politics blog reports that the standing unlimited appropriations bill is available for perusal. It's usually the last big budget bill to pass before adjournment and is generally loaded down with last-minute baubles. Hence, its affectionate "Christmas Tree" nickname.
And there's one ornament of keen local interest:
HOTEL AND MOTEL TAX: One provision would let a city impose by ordinance a hotel and motel tax of up to 9 percent, instead of just 7 percent. This tax is imposed on rental of lodging.
And a county could impose a tax of up to 8 percent.
Each city with a tax of up to 8 percent would have to spend at least one-eight of revenues for the marketing of community attractions, tourism facilities, and other tourism opportunities located within that city, the provision says.
Each city that charges 9 percent would have to spend two-ninths of the revenues for those purposes.
And each county that goes up to 8 percent would have to spend one-eighth of the revenues for the marketing of community attractions, tourism facilities, and other tourism opportunities located within that county, the bill says.
Cedar Rapids is lobbying for a 9 percent ceiling with hopes of convincing voters to hike the current local hotel/motel tax to help pay for a new downtown events center. A local pot of matching bucks is needed to pull down a load of federal economic development dollars.
Mayor Ron Corbett wants to use the hotel/motel tax to make the local match, but without a higher rate, that could leave several cultural/tourism facilities and programs to take a financial hit.
So it appears Corbett's proposal is a live round with a few days remaining in the legislative session.
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