Tourism Tax Is Set at 5 Percent - The Missourian: Local News

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Tourism Tax Is Set at 5 Percent

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Posted: Wednesday, June 18, 2014 6:32 pm

The Washington City Council approved the continuation of the 5 percent tourism tax for the coming year during Monday night’s meeting.

There was no discussion on the tax, which must be approved by the council each year. It has been set at the 5 percent maximum since 2007.

The tax is applied to motels, hotels and bed and breakfast establishments and the revenue is used to promote tourism in Washington.

The tax, approved by voters in 1999, authorizes a maximum tax of 5 percent on motel bills. However, until 2007, the council levied the tax at 3 percent each year.

The tax goes into a tourism fund that is overseen by an appointed tourism commission, which contracts with the Washington Area Chamber of Commerce to undertake tourism activities. The Chamber also contributes to the tourism fund.

Of the revenue collected each year, 95 percent goes for promoting tourism and 5 percent goes to defray expenses of the tourism commission.

The tax money is used to leverage additional funds in the form of state tourism grants and co-op advertising with businesses and other entities.

The council voted unanimously to set the bed tax at the 5 percent rate. There were no objections.