The following is a brief of the full story. For the full version, see Tuesday's print edition of the Boonville Daily News.
The City of Boonville will ask voters to approve an increase in the city’s hotel room rental sales tax rate – commonly referred to as the “bed tax” – from 2 to 4 percent at the April 7, 2009 municipal election. Currently, Boonville’s tax is among the lowest in the state. According to state statute, a 5 percent tax is allowable.
To clarify the issue, the council made a slight modification to the proposition’s title as it is specific to the hotel/motel industry, but also includes bed and breakfast establishments as well as campgrounds.
“People need to understand that this is not a total sales tax,” said Mayor Dave Nicholas, “this is a tourism bed tax.”
After some discussion, the council adopted a suggestion by City Administrator Irl Tessendorf to name the measure “Proposition for Increased Sales Tax on Hotel Room Rentals (Bed Tax) to Promote Tourism.
Boonville’s current 2 percent bed tax is paid by those who overnight in Boonville hotels, motels and bed and breakfast establishments. It generates about $75,000 annually. Those funds are used by the Tourism Commission to award grants to efforts that support bringing tourists to Boonville and for the city’s marketing efforts.
In addition to helping fund the Tourism Commission’s work, the possible funding increase could be used toward the salary of a combined city tourism director and chamber director. Currently, those positions are both part-time jobs, both filled by Lisa McClary.
