Resolution: Lodging Tax

Release Date: Feb 10, 2010

Whereas leisure and hospitality is an $11.2 billion industry in Minnesota that accounts for 16% of Minnesota's state sales tax and provides over 245,000 full and part-time jobs;

Whereas, local economies around the state utilize the local option lodging tax to attract visitors from outside of their area;

Whereas, the Minnesota lodging tax in M.S. 469.190 is to be used exclusively to market and promote tourism and convention destinations through a variety of methods;

Whereas, the ability to fund these promotion efforts to a level that is competitive in the marketplace is critical to a destination's success;

Whereas, the ability to impose a local option lodging tax to secure funding for these promotional efforts is critical to the promotion of many of Minnesota's tourism destinations.

Therefore, the Explore Minnesota Tourism Council supports:

The existing statute, M.S. 469.190, providing a local option lodging tax of up to three percent on the gross receipts from lodging and dedicating ninety-five percent of the gross proceeds only to marketing and promotion of tourism.