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Voters will decide on hotel/motel sales tax

Ivan Foley by Ivan Foley
December 23, 2024
in Headlines
Ramada in Platte City

Occupied rooms at hotels/motels in Platte City, such as this Ramada at 2512 NW Prairie View Road, will be subject to a dedicated five percent sales tax if city voters approve a question at the April 8 election. Ivan Foley/Landmark photo

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FUNDS FOR CITY INFRASTRUCTURE, ATTRACTIVENESS

In the spring election, several issues will be decided by Platte City voters. One of those is a proposed additional five percent sales tax on all occupied sleeping rooms used by transient guests.

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Commonly referred to as a hotel/motel tax, if passed by voters the legislation would impose the five percent tax on room rates in hotels, motels, bed and breakfasts, etc. in the city limits of Platte City.

The question will be on the April 8 municipal election ballot in Platte City. It needs a simple majority to pass.

Tom Cole, city administrator in Platte City, said the State of Missouri allows cities within certain qualifications to impose a five percent sales tax on hotel/motel rooms.

The City of Platte City qualifies as one such city because of its status as a county seat.

“As a community with close proximity to the primary airport in Kansas City, Platte City has evidently not pursued a transient guest tax in the past, which has prevented the city form collecting revenue from travelers,” Cole said.

He added that a hotel/motel room tax “is a very common tax utilized through the state and nationwide.”

Cole said if approved by voters, it is anticipated that the tax would generate a minimum of $100,000 annually for the city and possibly as much as $200,000 annually, depending upon the range of occupancy of local hotels/motels.

Cole said his numbers are conservative and “based on very low occupancy.” He indicated he made his estimates based on 30 percent to 50 percent hotel/motel occupancy.

He said hotel/motel tax revenue is required by law to be used for travel and tourism, including building facades, signage, infrastructure, marketing and anything that can be utilized to improve the attractiveness of a community.

Cole said he envisions revenue from the tax being used to assist in a downtown improvement plan. With assistance from the county, the city is having a study done on the future of the Downtown Platte City area.

Forms of downtown improvement that could benefit from the hotel/motel tax could be streetscapes, lighting, benches, the smaller forms of downtown improvement.

Platte City has been awarded a $135,000 grant for a planning process for its downtown area.

The grant does not cover costs for any actual improvements, it is a grant only for planning.

The “planning sustainable places” grant, administered by the Mid-America Regional Council (MARC), requires a $50,000 applicant match, for a total project funding of $185,000.

The geographical “downtown” area to be covered in the planning work is an area bounded by Hwy. 92, North Street, First Street, and Fourth Street, focused on the downtown business district and the courthouse square.

Platte County assisted the city in development of the grant application. The city is the applicant of record.

During the grant application process, the city and county informally agreed to each fund 50 percent of the local match.

Tags: electionsplatte cityplatte countytaxes
Ivan Foley

Ivan Foley

Ivan Foley, longtime owner/publisher of the Platte County Landmark, is a past winner of the national Gish Award for courage, tenacity and integrity in rural journalism, presented by the Institute for Rural Journalism and Community Issues at the University of Kentucky. He lives in Platte County not far from KCI Airport.

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