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HomeMy WebLinkAbout~Master - Increasing the Hotel and Motel Tax from 5% to 7%, use of tax proceeds ORDINANCE NO. 3519 AN ORDINANCE TO AMEND THE MUNICIPAL CODE OF THE CITY OF AMES, IOWA, BY REPEALING SECTIONS 24.4, 24.5, 24.6 AND 24.7 OF THE AMES MUNICIPAL CODE AND ENACTING NEW SECTIONS 24.4 AND 24.5 FOR THE PURPOSE OF PROVIDING FOR AN INCREASE IN THE RATE OF THE HOTEL AND MOTEL TAX FROM 5% TO 7% AND MAKING PROVISION WITH RESPECT TO THE USE OF THE PROCEEDS; AND ESTABLISHING AN EFFECTIVE DATE. BE IT ENACTED, by the City Council for the City of Ames, Iowa, that: Section One. The Municipal Code of the City of Ames, Iowa shall be and the same is hereby amended by repealing Sections 24.4, 24.5, 24.6, and 24.7 and enacting new Sections 24.4 and 24.5 as follows: "Sec. 24.4. HOTEL AND MOTEL TAX INCREASED TO SEVEN PERCENT (7%). The rate of the hotel and motel tax shall be and is herby increased from the rate stated in Sec. 24.3 to a rate of seven percent(7%) upon the occurrence of an election at which a majority of those voting on the question favors that increase. Sec. 24.5. USE OF TAX PROCEEDS. The proceeds of the hotel and motel tax shall be used in xcordance with the requirements of the statutes of the State of Iowa. In that regard the City Manager may work with the Ames Visitors and Convention Bureau and representatives of Iowa State University to develop, for the approval of the City Council, multi-year agreements for: (1) utilization of the said tax proceeds in the promotion and encouragement of tourist and convention business in the city, (2) utilization of the said tax proceeds for improvements to and construction of recreation, convention, cultural and entertainment facilities." Section Two. This ordinance shall be in full force and effect from and after its passage and publication as required by law; and after an election at which a majority of those voting on the question favors the above stated increase. Passed this 23rd day of March , 1999. Diane R. Voss, City Clerk Ted Tedesco, Mayor 0530