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North Ramsey News

Thursday, April 25, 2024

More communities mull idea of adding lodging tax

Tax

The Minneapolis/St. Paul Business Journal reported the state's lodging tax has become more popular among local officials, with several communities seeking to add the tax.

Cottage Grove, Woodbury, Lakeville, Shoregrove and Maple Grove either want to or are planning to add the lodging tax, according to the Journal.

The purpose of the tax is to boost revenue for tourism promotion. While the tax is usually set at 3 percent, large hotels can end up paying more. The business journal reports that Bloomington charges a flat rate of 7 percent.

Cottage Grove's tax will begin in December, and local officials are working to launch a nonprofit visitor's bureau that will help manage the funds, according to the business journal.

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