County Receives First Lodging Tax Collection

Mills County has received its first payment for the lodging tax for unincorporated areas of the county that went into effect July 1.

Mills County Auditor Ami Petersen said the first quarterly lodging tax check, from the Iowa State Treasurer’s Office in the amount of  $1,779.18, was received by the Mills County Treasurer’s Office at the end of November.

“It’s just like the way they do the local option sales tax. The state collects it and then they send us a check,” Petersen said.

Mills County residents passed the 7% lodging tax during a special election on March 7 by a margin of 163-33 (83 % “Yes” vote).  As a result of the election, hotel, motel and Airbnb stays in unincorporated areas of the county became subject to a 7% tax on July 1.

The election took place in part at the request of a developer who had interest in building a hotel near the I-29/Highway 34 interchange. The hotel project, however, did not come to fruition after the tax was passed.

Revenue generated by the tax can be used for tourism-related purposes, including providing financial assistance to hotel developers to offset start-up costs.

An identical tax was passed in the City Of Glenwood in the November election.