County, Economic Development Officials Push For Passage Of Lodging Tax

A special election on March 7 in unincorporated areas of Mills County will decide the fate of a proposed hotel/motel tax and could go a long way in fueling economic development near the Interstate 29 – Highway 34 interchange.

Mills County Auditor Carol Robertson said the vote is taking place at the request of a developer who’s interested in building a Holiday Inn Express hotel west of the I-29/Highway 34 interchange.

“That’s what sparked it,” Robertson said. “He wants some incentives and one of them is a portion of the hotel / motel tax for so many years. He wants to make sure we pass the hotel / motel tax before he commits 100 percent.”

If the measure is passed, hotel, motel and airbnb stays in unincorporated areas of the county would be subject to a 7 percent tax. The tax would be implemented July 1.

Mills County Economic Development Executive Director Andrew Rainbolt said the use of lodging tax revenue to help hotel developers offset start-up costs is a common practice to generate tourism. He noted that any development deal between the county and the hotel developer wouldn’t be finalized until after the March 7 vote.

“Our next hurdle is getting the tax in place,” Rainbolt said. “Then we’ll be on to finalizing a development deal. We don’t have a deal finalized, yet. That will become public when it goes to the board of supervisors.

“Essentially, the state law says you have to use up to 50 percent of your hotel tax revenue to build, maintain and promote tourist activities in your jurisdiction. The revenue that is generated off the hotel for a few years, we’ll kick back a portion of that to the hotel to help get them going. That will kind of ratchet down over time.”

Rainbolt said landing a hotel near the I-29 / Highway 34 corridor would be an important step in the county’s ongoing economic development efforts.

“I think right now we’re probably missing out on a lot of opportunities to have people stay in Mills County,” he said. “We’ve got hotels to the south of us and hotels to the north of us but we’ve got a nice community and access to the west and to the east that’s a crossorads. I think once we get the hotel out there, it will certainly mean more people buying gas and stuff out at the current truck stops we have out there but our hope is that it starts to attract more commercial type development either north or south of 34 there. We’d start seeing more amenities that visitors can use but also that people from Mills County can use as well.”

Lonnie Mayberry, chair of the Mills County Board of Supervisors shared similar thoughts on the potential impact a new hotel could have for the communty.

“There’s a need for it,” Mayberry said. “I think it would be a big boost for it (economic development). There’s things that follow with those and we’ve had a lot of people looking at developing at different places out there.”

Mayberry stressed that the tax would not be paid by Mills County residents.

“It does not affect the taxpayers here,” he said. “It would be people traveling.”
Rainbolt said in the weeks leading up to the March 7 election, the Mills County Economic Development Foundation will be partnering with the Mills County Chamber of Commerce in promoting passage of the tax and holding informational meetings.

Special Election Notes
The special election will only involve residents living in unincorporated areas of the county. Voting on March 7 will take place at three locations for the following townships:

Lakin Community Center (Mills County Fairgrounds, Malvern) – Indian Creek Township, Deer Creek / White Cloud Townships, Anderson Township, Silver Creek / Center / Rawles Townships.

Mills County Annex (402 Railroad Ave., Glenwood) – Glenwood Township, Plattville / Lyons Townships.

St. John Lutheran Church, Mineola – Oak / St. Mary’s Townships, Ingraham Township.

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Early / Absentee Voting

Voters can request an absentee ballot to be mailed to them now. Forms can be requested at the Mills County Auditor’s Office, from the office’s website, over the phone at 712-527-3146 or on the Iowa Secretary of State’s website.
Requested ballots will be mailed out starting Wednesday Feb. 15. In-person absentee voting will also begin on Feb. 15 at the county auditor’s office on the main floor of the Mills County Courthouse in Glenwood.