Council approves room tax in Evansville
EVANSVILLE — The creation of a room tax assessed at the city’s new hotel could add nearly $30,000 in new revenue for the city.
The city council Tuesday night voted 7-0 to approve a 7 percent room tax. The city by law must spend the revenue on marketing.
“The intent of the tax is to get people to come to Evansville, to stay the night and to spend money here,” City Administrator Dan Wietecha wrote in a council memo. “It may pay existing promotional expenses or may be opportunity to pay for new marketing efforts.”
The city first hotel, Cobblestone Inn & Suites, is under construction and is expected to open in July. The hotel, on Brown School Road next to McDonald’s on the city’s east side, will have 31 rooms.
The annual potential revenue is nearly $30,000, assuming rates of $75 per night with 50 percent occupancy, Wietecha said.
Among the 212 municipalities in Wisconsin that collect a room tax, the most common rate is 5 percent, according to the city memo.
The tax is paid directly to and administered by the city, but it is undecided which committee will manage the money, Wietecha said. That likely will be decided during budget discussions in late summer or early fall, he said.
The added revenue could be used to promote events such as the Fourth of July celebration or expanding the city’s advertising in the Rock County tourism guide, he said.
ROOM TAX RATES
The most common rate among the 212 municipalities in the state that collect a room tax is 5 percent. Below is the room taxes charged by area communities in 2006:
Beloit: 8 percent.
Madison: 8 percent.
Janesville: 8 percent.
Stoughton: 6 percent.
Verona: 6 percent.
Fitchburg: 5 percent.
Middleton: 5 percent.
Monroe: 4 percent.
New Glarus: 3 percent.
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Jun 11, 2008 at 8:27 p.m.
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If you build it they will come.
Jun 11, 2008 at 4:37 p.m.
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Obviously they hope to be overflow for Madison and Janesville events, as well as serve the small Evansville business market. Wasn't there a significant local investment in this?
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Anyway, Evansville is entitled to assess a competitive tax and such taxes are generally slated for promotional uses. I don't see what the big deal is. How many people actually even check their hotel taxes in advance, anyway? Not a lot, I bet.
Jun 11, 2008 at 3:42 p.m.
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I am not sure what there is in Evansville to do, but there are friends and family of mine that I would NOT want to stay in my house. A hotel in town would be close enough, but far enough away.
Not that I am taking sides here, but a hotel may just be the thing Evansville needs for all of us to actually be interested in an overnight there.
Jun 11, 2008 at 1:02 p.m.
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Good comments, all of you. I can't wait to vacation in Evansville. I'll just have to leave my ciggs at home, as the hotel is only for non-smokers. It may be a tough choice though, as to whether I pay the hotel tax or the cigg tax.
Jun 11, 2008 at 12:58 p.m.
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RE: what's in Evensville to require an overnight stay.
Maybe the fact that the motels in Madison/Janesville are full up for some reason?
Jun 11, 2008 at 12:39 p.m.
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There's nothing like a new tax to "encourage people to come here and spend money." I'll make reservations as soon as I'm finished with this post.
Jun 11, 2008 at 12:18 p.m.
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Why would anyone stay in Evansville? Especially at a hotel between a grocery store that closes at 9pm and a gas station that closes at 10pm. What is there to see? A lake full of weeds or a brick street covered in Bud Lite cans from the drunks at Pete's or the Night Owl from the night before. Drive the extra 15 minutes and stay in Madison or Janesville at a decent hotel with a pool.
Jun 11, 2008 at 9:47 a.m.
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The intent of the tax is to get people to come to Evansville....now there's a clever spin.
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OK, I'll bite, what is in Evansville that would require an overnight stay in order to see it all?
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