Sioux Center, IA tax hike could help proposed events center
SIOUX CENTER, Iowa (KTIV) - Voters in Sioux Center, Iowa are at the polls today to vote on a proposed increase to the local hotel and motel tax.
The tax is currently one percent... one of the lowest rates in Iowa.
The proposal is to raise it to five percent.
Sioux Center's City Manager say the tax shouldn't discourage hotel business because surrounding towns already have a five percent tax... and the state allows up to seven percent.
"You know there is a lot of business that does come here sales people and seminars that go on so people are looking for a room any way in this area, so if they can stay in that five percent they will be in that competitive range," says Sioux Center City Manager Paul Clousing.
If approved... the extra tax money would be used to help pay for operations and promotions for a proposed events center.
A committee will pitch the project to the Vision Iowa Board next week... trying to get grant money to build.
They also hope to use TIF dollars or Tax Increment Financing and a community fundraising campaign to get the two-and a half million dollars needed to build a 13-thousand square foot facility.
The site picked is near the golf course development off of Highway 75.
Clousingsays raising the hotel tax would bring in the money needed to run the events center.
"At five percent we would be at that 70 to 80-thousand dollar range so that should provide us a revenue stream that should allow us to do promotional events and also to provide for the operation of a future events center," says Clousing.
Polls are open until eight tonight in Sioux Center.
We'll have the results tonight on News Channel Four at 10.