The Atlantic Area Chamber of Commerce in conjunction with the Atlantic Parks & Recreation Department is asking for you to vote YES for hotel/motel tax on Tuesday, March 2nd. Polls will be open from noon to 8 p.m. at Heritage House and the Cass County Community Center.
Frequently Asked Questions
Who pays the tax?
This tax only applies to individuals renting rooms in a hotel, motel, inn, or other public lodging. Campsites are NOT affected by hotel/motel tax.
Will this tax affect my property tax rate?
No.
What is the tax rate?
The Atlantic Parks and Recreation Department and the Atlantic Area Chamber of Commerce are asking voters to approve a 7% Hotel/Motel tax rate. This is the maximum allowed, and most communities in Iowa with hotel/motel tax also charge 7%.
How would the tax be allocated?
The proposed allocation will be split 25%/75%. The Atlantic Parks and Recreation Department would receive 25% to supplement their current budget. This money could be used to improve existing parks and facilities, repair or replace equipment, and more. The Atlantic Convention & Visitors Bureau would be created and use 75% to attract more visitors, conferences, and meetings to the Atlantic area.
Who benefits from the proposed tax?
Atlantic Citizens & Businesses
Citizens will benefit when these additional dollars are invested in community projects such as new trails, updated parks, additional festivals and community events. Increased marketing efforts will translate into additional visitors and dollars being spent in Atlantic businesses, helping to secure and increase local jobs.
Hotels & Motels
The tax revenue will be used to draw even more overnight travelers to Atlantic. The overall goal of the tax is to INCREASE visits to our community, thus giving our motels & inns more business. The hotels don't pay this cost out of their pocket. This tax (typically $2-$4) is paid by the customer and is remitted to the state by the hotel. The state then disburses the tax revenue to the city of Atlantic.
Local Economy
The new Atlantic Convention & Visitors Bureau will market Atlantic to overnight tour groups, conferences, and individual travelers. Also, additional travelers and residents means increased spending at local businesses, which results in more Local Option Sales Tax revenue for our city, too.
Are the city or school local option taxes charged on hotel/motel rooms?
No. The city and schools do not receive any tax revenue from the rental of hotel rooms.
Are there any restrictions to revenue collected from the proposed tax?
Yes, Iowa Code, Chapter 423A requires cities to spend at least 50% of the revenues collected on improvements related to “recreation, convention, cultural, or entertainment facilities” or the “promotion and encouragement of tourist and convention business in the city.”
What other towns have this tax?
There are 125 cities (14 counties, too) in Iowa that have this tax. Walnut, Harlan, Stuart, Shelby, Elk Horn, Avoca, Carroll, Denison, Winterset, Clarinda, Shenandoah, all have hotel/motel tax.
Where can I get more information?
You can read the proposal by visiting our Press Room or stop by the Chamber’s office at 102 Chestnut. The Iowa Department of Revenue has a great FAQ about hotel/motel tax as well at http://www.iowa.gov/tax
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