Hotel/Motel Tax Information

The City of Vinton has placed a 7% Hotel/Motel Tax question on the upcoming election ballot that will be decided on November 7, 2017.

The proposed 7% Hotel/Motel Tax is a transient tax that would be paid only by visitors and patrons staying at a hotel or motel located within City limits. To date, 173 cities and counties in the State of Iowa have such a tax. If passed, the tax would go in effect on July 1, 2018.

The Hotel/Motel Tax was approved for placement on the ballot by the Vinton City Council and based on the recommendation by Vinton Unlimited.

Per the Code of Iowa, a portion of the funds must be spent on recreation, convention, cultural or entertainment facilities. The remaining funds may be spent at the discretion of the City. The ballot measure proposes 75% of the funds be turned over to Vinton Unlimited to disburse with the help of a designated committee for recreation, convention, cultural or entertainment facilities. The remaining 25% may remain with the general fund for the City of Vinton.

Proceeds from the Hotel/Motel tax would be used for community events, cultural and recreational programming, tourism and various other projects.

Let’s look at an example. If a hotel room costs $100 a night, that one room will generate $7.00 in additional revenue. Let’s assume we have 10 hotel rooms rented 5 nights a week.

50 hotel rooms ($7.00) = $350.00 in additional revenue a week.
$350 (52 weeks) = $18,200 in additional revenue a year coming back to Vinton.

Seventy-five percent on the yearly revenue will be retained for community events, cultural and recreational programming, tourism and various other projects. The remaining 25% will be used at the discretion of the City.

Iowa Hotel & Motel Tax Questions and Answers (Iowa Department of Revenue)

Jurisdiction and Rates (Iowa Department of Revenue)