PLATTE CITY WILL FORM A TOURISM ADVISORY COMMITTEE
In Platte City, a five percent guest tax on gross receipts from charges for sleeping rooms paid by guests at hotels, motels, bed and breakfasts and online short term rentals will take effect on Nov. 1.
The hotel/motel sales tax was approved by Platte City voters in April of this year, with 237 voting yes to 167 no.
An ordinance establishing the city code for the guest tax was approved at a meeting of the board of aldermen on Tuesday night.
Revenues generated by the tax will solely support tourism, conventions and visitor-related activities and events, including infrastructure and economic development efforts that benefit the tourism and visitor economy, according to the city and the ballot language of the measure that was approved.
In accordance with state law governing this tax, the ordinance creates a special revenue fund to account for all revenues and expenditures related to the tax by renaming the existing economic development fund as the “economic development and visitor’s activity fund.”
The ordinance also establishes a tourism and visitor’s activity advisory committee to provide input and recommendations on the use of the funds raised by the tax.
Under state law, Platte City’s status as the county seat made it eligible to impose a transient guest tax subject to voter approval.
The ordinance defines applicable lodging businesses to ensure coverage of modern lodging models, including short-term rentals commonly booked through online platforms.
Under the city’s ordinance, taxes collected by the businesses are to be paid to the city on the 20th of each month, covering receipts from the previous month.
Lodging providers failing to remit the taxes timely are subject to penalties and interest as detailed in the ordinance, including a five percent penalty for overdue payments, revocation of their city business license and disconnection of utilities for businesses whose business license has been revoked.
“This is the only type of sales tax in Missouri that is administered and collected directly by the municipality rather than by the Missouri Department of Revenue,” says a staff report from DJ Gehrt, interim city administrator.
The ordinance allows the city to retain five percent of the proceeds collected to offset the administrative costs associated with tax collection, monitoring, enforcement and accounting.
ADVISORY COMMITTEE
In Platte City, a tourism and visitor’s activity advisory committee will be created to provide non-binding recommendations to the board of aldermen regarding plans, strategies and expenditures with funds raised by the hotel/motel tax.
The committee will consist of five members who will be appointed by the mayor with the consent of aldermen.
One member of the committee will be a current member of the board of aldermen. The remaining members may include business owners, residents, chamber of commerce representatives, local officials, and others with relevant expertise.
The mayor will serve as an ex officio member who does not count toward the quorum and may vote in the event of a tie.
The board of aldermen is not bound by the recommendations, as the board of aldermen retains sole authority to approve expenditures from the fund through the annual budget process or duly adopted amendments.
HOW MUCH MONEY WILL
IT GENERATE?
The guest tax will generate new revenue for the city without increasing taxes on residents. An analysis prior to the April election estimated the new tax will generate about $100,000 annually when fully implemented.
As actual revenue is unknown, the fiscal year 2025-26 city budget “assumes no revenues and recommends no expenditures from this tax,” says Gehrt’s staff report.
