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City Residents To Decide Hotel-Motel Tax Increase
Oskaloosa, Iowa – The residents of Oskaloosa will head to the polls on March 2nd to decide if an increase in the Hotel-Motel tax is something they want.
Currently, the Hotel-Motel tax rate in Oskaloosa is 5%. Including Oskaloosa, that makes fifteen communities across the state with that rate.
In comparison, the Iowa Department of Revenue says in total 168 cities charge a hotel-motel tax.
There is one community charging 6%, 15 charging 5%, and one community charging 4% hotel-motel tax. The majority of communities in Iowa, or 151 of them, charge the 7% rate.
The call for a special election on the matter was set forward by the Oskaloosa City Council and will only impact hotels and motels within the city limits of Oskaloosa.
City Council Declares Special Election
by Charlie Comfort
Oskaloosa, Iowa – Oskaloosa City Council is moving ahead with a special election for voters to consider approval of a measure to raise the City’s hotel-motel tax by 2%. At the December 7th City Council meeting, the Oskaloosa City Council voted to approve calling a special election for March 2nd, 2021.
According to City Council documents, revenue from the proposed 2% increase would be used to further promote recreation, tourism, and economic development; as a means to address project needs identified through initiatives such as the Oskaloosa Creative Placemaking Action Plan. Oskaloosa is one of 17 communities that are below the maximum rate of funding for a hotel-motel tax. 163 Iowa communities have a hotel-motel tax.