LOWELL — The City Council continued a discussion on creating a 2 percent tax on hotel stays during its meeting Tuesday.
The tax would apply to renting or leasing of a hotel room or similar accommodations, according to the proposal.
Other businesses could include a bed and breakfast or campground. Money from the tax would be used to promote the city, officials said.
The council read the second reading of the ordinance during the meeting. A third and final reading will be made during its meeting May 19.
Kendell Stucki, council member, said a business owner raised some concern about the proposal to him. He said the owner may have to update software to add the tax.
“He didn’t know if he could do this without spending thousands and thousands of dollars,” Stucki said.
Eric Schein, council member, said the concern was valid.
He owns Complete Comfort Heating and Cooling and said it wouldn’t be easy to update his software for an additional tax.
“It would be a complete nightmare,” Schein said.
Tom Kieklak, city attorney, said there was no reason to come up with a solution to the question during Tuesday’s meeting.
“This cat has been skinned already,” Kieklak said.
“I’m sure commissions across the state would more than willing to help you with this. I think this has already been addressed in other cities.”
An Advertising and Promotions Commission also would be created by the ordinance. The commission would manage the money collected.
The ordinance also will place a 2 percent tax on renting meeting or party rooms.
It excludes accommodation rentals longer than 30 days.
Money can be used to promote the city including the construction of facilities to assist in promotion such as a convention center or tourist facility.
The city isn’t required to put the tax to a public election, Kieklak said.
He said a city could create up to a 3 percent tax on overnight accommodations via a city council vote.
The City Council also appointed Delia Ingle to fill a vacated seat on the council. Connor Jones resigned from the Ward 2, Position 2 seat in February. He cited a job offer in another state for the reason.
Ingle will serve out the remainder of Jones’ term, which ends in December 2019.
She has lived in Lowell 12 years and is director at the Lowell Senior Center.
“I feel like I have lived here long enough to have seen the changes and want to be a part of making decisions for the city,” Ingle said. “I am honored and I look forward to serving the citizens of our community.
The board held a question and answer session with Ingle and three other candidates before the meeting. It also went into executive session to discuss the issue.
Council member Keith Williams resigned from the council Tuesday. He said his family is moving out of the city.
Teresa Moss can be contacted by email at [email protected] or on Twitter @NWATeresaM.