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Sunday, May 06, 2007

Alma tourism committee tables proposed lodging tax

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A proposed 5 percent lodging tax on bed and breakfast and motel rooms in Alma was tabled after business owners opposed it.But the Alma Parks and Recreation Committee said the business community needed to work together with the city council to help the city attract tourists.A room tax was viewed as a method of raising revenue from tourists to help pay for upkeep of parks and public recreation services.The city council says it is spending too much compared to other small cities. Most of the money comes from property taxes.Peggy Jost, owner of the Hillcrest Motel in Alma, said she received a “mixed response” from business owners she approached about giving donations to the city as an alternative to the tax.Jost said a room tax would drive away visitors. She said guests would look for lodging elsewhere.She said several people told her it is the city’s obligation to have money set aside for maintenance of parks and recreation.Some suggested Alma charge a citywide sales tax, but City Administrator Linda Torgerson said Wisconsin law doesn’t allow a small city to impose a municipal sales tax.The only alternative tax available to the city for raising revenue to help support tourism is a room tax.The law provides that a majority of room tax revenue must be used for tourism-related promotions, Torgerson said.Alma Mayor Lois Balk and city Alderman Larry Farl, a local business owner, said a change in mindset would be necessary if the city and businesses were going to do a better job of working together to solve funding problems.Farl said the Alma Chamber of Commerce and businesses might have to do more to improve fundraising activities in cooperation with the city to help fund local tourism.Balk recommended the community talk about tourism and come up with new ideas for raising revenue.
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