Hotel Tax Eyed to Fund Improvements
April 21 2011
Question could be on Nov. ballot
By Judy Debus Journal-Advocate regional editor
Posted: 04/20/2011 10:16:11 AM MDT
STERLING – The Sterling City Council met in work session on Tuesday night and heard a proposal for an accommodations tax in the city to be presented to the voters in November to provide a funding source to promote tourism, conventions, community beautification and related activities within the city. Presenting the preliminary proposal to council was Attorney Alex Wright, who is a member of the CSU/DOLA project design committee.
The committee is working to find sources for funding to carry through with the various suggestions that resulted from the study and planning that was done by the CSU student team. Among the suggestions made were improved signage, adding another exit from the interstate; downtown landscaping and changing one-way streets to two-way.
The welcoming signage at the entrance to Sterling is being looked at as a first step in beginning and keeping the project going.
“This is something we want the community to know we take seriously and we want to make something happen now to keep the ball rolling,” said design committee chairman Rocky Joy. “We want the community to be able to see results from the smaller parts of the project.”
In order to do that, sources of funding are necessary and the “hotel” tax seems the logical first step to find those sources. There are other avenues that could be looked at in addition to funding from the tax such as Greater Outdoors Colorado grants and monies from other organizations.
The tax would be levied on the lodging price paid for short-term (less than 30 days) lodging services in the city. Those paying the tax would be the people staying in the local hotels and motels as they travel through the region. The hotels would charge the tax to their customers and would also benefit from the community beautification and related tourism activities to bring people into town.
Wright noted current cities that have such a tax in the state and the percentages they are levying on lodging accommodations.
“We want to involve the hotel owners in any discussions on this matter and we also want to look at the surrounding area to see what is available,” Joy said.
Rich O`Connell, executive director of the Logan County Economic Development Corporation said he has discussed this with some hotel owners and has received a positive response in the past. He also offered to do a survey of the hotels and get the information back to the council.
Wright reported that if it is decided to pursue the tax, the Department of Revenue will need to be notified by July 1 and the Clerk and Recorder will need notice to place the question on the ballot by July 22.
Consensus of the council was for city attorney Kelly Barlean to meet with Wright to gather the information that is needed and to report back to the council before any decision can be made.
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