Agenda - Council - 03/13/2012 - Laserfiche WebLink

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Recommendation: Staff is seeking input and approval from the Ramsey City Council regarding the proposed Ordinance Imposing a Lodging Tax and Allowing for Membership in the Twin Cities Gateway Convention & Visitors Bureau (CVB). Funding Source: In 1983, the Minnesota Legislature passed the Local Option Tax. The law was passed such that 95% of all proceeds from a local option lodging tax must be used to fund a local convention or visitors bureau for the purpose of "marketing and promoting the area as a tourism or convention area." The remaining 5% could be retained by the taxing authority (the City) for its administrative costs. Any community desiring to join Twin Cities Gateway, is required to adopt a lodging tax (up to 3.0%). This is a statewide requirement for any city wishing to join any CVB organization. This would be added to the current sales tax paid by customers. Both the Comfort Suites management and the owners are supportive of the City joining the CVB and implementing this revenue change (See attached letter). It is estimated that this would generate approximately $24,000 based upon last year's gross revenues. Following discussions with the City Attorney, implementing the lodging tax would not require a public hearing, but would require adoption of an ordinance by the City Council. A simple majority of the Twin Cities Gateway Board of Directors must also approve the admission of the City of Ramsey into the CVB (See attached by-laws). Council Action: Introduce Ordinance Imposing a Lodging Tax and Allowing for Membership in the Twin Cities Gateway Convention & Visitors Bureau (CVB). Attachments Ramsey Ordinance Imposing Lodging Tax TCG CVB By -Laws Form Review Inbox Reviewed By Date Kurt Ulrich Kurt Ulrich 03/08/2012 05:58 PM Form Started By: Aaron Backman Started On: 03/08/2012 03:43 PM Final Approval Date: 03/08/2012