Plymouth will take a close look at a possible lodging tax placed on hotels in the city. The city council set a public hearing for Feb. 14.
A lodging tax could raise $500,000 to $700,000 a year for the city. State law allows cities to collect a tax of up to 3 percent, and most of that money would have to be used to market or promote the city as a tourist or convention center.
While council members only voted on the public hearing Tuesday night, there was also some discussion of the pros and cons of a lodging tax. Plymouth City Council member Jim Prom says it may not be needed now.
"We're running surpluses yet we are adding another revenue stream for whatever use we want to," Prom said. "I love the idea for when we need it, but I don't think we need it right now if we are constantly running annual surpluses of a million dollars."
Plymouth City Council member Jeff Wosje says it could help pay for things that visitors use like the Plymouth Creek Center and the Plymouth Ice Center.
"We're going to use it to really offset some of those capital expenditures," Wosje said. "If we're looking at Plymouth Creek to expand Plymouth Creek, well Plymouth Creek brings in weddings and events and people stay at hotels so they go to weddings and events and that's really the context of why I would like to move forward on this."
Right now, 110 Minnesota cities impose a lodging tax, with 26 of them in the metro area. The council voted to hold a public hearing Feb. 14.
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January 25, 2017