Photo by Zachary Siebert / St. Joseph News-Press / Purchase this photo
As city and county officials ponder raising area hotel/motel taxes Elizabeth Cox and her grandchildren Jasmine, 3, and Josh Cox, 1, idle on the lawn Tuesday afternoon of the Days Inn at Frederick Boulevard and Interstate 29. Transplanted from Alabama, the Cox family has been staying at the hotel for two weeks while they look for a home and Ms. Cox’s husband does welding work at a local ethanol plant.
The talk of unrelated city and county hotel/motel taxes has grown louder and more complicated.
Both the city of St. Joseph and Buchanan County want to increase the current 3 percent city hotel/motel tax by 5 percent, although the city will not seek the increase on the November ballot.
Even as the two defend their uses of the tax dollars as “tourism promotion” to satisfy legal requirements, the taxes still could end up in legal trouble. The city is prepared to “challenge” if the county gets voter approval to raise the tax.
The two entities in effect could be asking voters to approve a 13 percent hotel/motel tax. If approved, the taxes could support competing convention/expo centers on different sides of town. Also, the county would have two different taxes supporting two different convention and visitor bureaus.
The state Legislature in 2002 allowed the city to raise its hotel/motel tax to 8 percent, with voter approval. The law said the county could also raise the tax, but it could only collect the money on rooms outside city limits.
The county has until the end of the month to place the issue on the November ballot and, meanwhile, has met with social organizations to discuss the tax.
“We’ve got a strategy for protecting our own interests,” City Manager Vince Capell told the City Council on Tuesday. “... We would not just let the county do that without challenging that in some way.”
County counselor George “Scotty” Murray, said the state statute (67.1361) doesn’t apply to what the county wants to do. He said the county would instead use an older statute (67.1100) that allows cities or counties to pass a 5 percent hotel/motel tax “solely for funding a convention and visitors bureau ... for the purpose of promoting the city or county as a convention, visitor and tourist center.”
Buchanan County already collects a one-tenth percent sales tax that funds the St. Joseph Convention & Visitors Bureau. The hotel/motel tax would support the nonprofit Buchanan County Agri-Business Expo Center Inc., which the county created last year.
Mr. Murray said nothing prevents the county from operating a second tourism bureau.
The county wants to use the tax to help build a new $30 million agricultural expo center east of the Shoppes at North Village at Interstate 29 and North U.S. Highway 169. Private investors could pay for half of the facility.
Does building an expo center meets the state’s legal use of the hotel/motel tax “solely” for a convention and visitor bureau to promote tourism?
“I think they do mesh,” Mr. Murray said. “It’s a promotion that would be, in my opinion, a conceivable use.”
Mr. Murray added that he ran the idea past legislative researchers in Jefferson City earlier this year.
The city has discussed a variety of uses for the hotel/motel tax increase, including a downtown convention center/hotel, the Civic Arena and Missouri Theater, the riverfront nature center and other parks/recreation operations.
The City Council on Tuesday decided not to place the issue on the November ballot. Legal issues aside, the council agreed this isn’t a good time to rush forward with a tax.
“There’s no way the city and the county can put a motel tax on (the ballot) and it be accepted by the public,” Mayor Ken Shearin said.
Added Mike Hirter: “I’m not sure anybody can pass a tax right now, no matter what it is.”
Kansas City’s hotel tax is 7.5 percent. Kansas City also charges $1.50 per hotel room and a $4 increase in the daily car rental tax to fund the Sprint Center.
Joe Blumberg can be reached at
joeblumberg@npgco.com.
This Agri Expo Center idea is a very inovative approach for St. Joseph. From what I have seen, there is already a sound plan with the potential of greatly increasing the economic well being of the city. I think this needs to be seriously thought out and the city should really take a good look at this plan before challenging it. The other concept of a downtown convention center right now is just an idea with a lot of uncertainty. Focus needs to be placed on developing downtown as a shopping and entermainment center and the Agri Expo Center as the draw to bring people in. Like I said before, Branson population base 6000, Annual revenue from the outside in dollars off the scale, St Joseph, population 75,000 annual revenue from the outside travel dollars, a trickle. With all the opportunity here, there should be no excuse why St Joseph cannot be a place people want to come to for a destination. Why would we want to hold this up over a city county power struggle? Work together, this in my view is a solid plan with unlimited potential and every effort should be made to progress it foward and get it accomplished. Every day we stagnate, we loose. And that means no new revenue coming in to repair streets, sidewalks, sewers, etc. This can help, knock off the political power struggle, find common ground and move on it.
Posted by Topshape on August 13, 2008 at 8:46 a.m. (Suggest removal)Expo center is a good idea, but where is the county's Business Plan, Feasability study on how the money will be raised and whether the Center will have as much occupancy that they say. Also is their a conflict of interest with one Commissioner on the Property Located Southwest of the proposed Expo Center. These are questions that must be answered if you are going to spend $30,000,000.
Posted by apmastrangelo on August 13, 2008 at 10:48 a.m. (Suggest removal)ANYONE thinking that such a tax increase would not be challenged legally because of the "city" opinion might best rethink their position.
Posted by Mizzou on August 13, 2008 at 3:51 p.m. (Suggest removal)Topshape - Your comments are right on target. Remember it is the tax payer that picks up the bills when the shortfalls begin.
The good thing about this tax is that the citizens of Buchanan Couty or the city of St Joseph would not be responsible, unless they stayed at a hotel/motel.
I think that if the supporters got this info out, then I think that it would pass. If you show that building the convention center/ag expo would bring in tourism dollars to the county/city and the people coming in would foot the bill. I think that it is a no brainer that it could pass, despite what our great leader (mayor*sarcasm*) thinks.
Maybe I am wrong in my thinking.
Posted by wildwest on August 13, 2008 at 7:40 p.m. (Suggest removal)What happens if I don"t "rethink" my position? In my view, this is exactly why St Joseph is the way it is with stagnant growth, something is always "challenged" on any progression plans and it holds good ideas from businesses and people who are trying to move things forward back. It is exactly why downtown is the way it is and there is no real plan in site for it.
Posted by apmastrangelo on August 13, 2008 at 8:12 p.m. (Suggest removal)Mizzou - Your thinking is not wrong but would suggest the greater picture needs to be looked at. What if the added tax impacts occupancy? Anyone have friends or relatives that need to stay at a motel when visiting? At some point everyone does pay. More importantly what happens if the venue just does not quite make its operating expenses. We all know the one's picking up the tab at that point; us poor tax payers.
Posted by gladimgone on August 13, 2008 at 8:21 p.m. (Suggest removal)and, wildwest - Do and do not agree with you. Things are stagnant in various sectors but not just because of challenges. Downtown for instance, my favorite subject, suffers not just from a lack of a plan but also a complete disregard in creating a user and business friendly environment. Major issue number one, archaic parking regulations that discourage even the most hard core believers in the area. I could go on but certain you know and understand exactly where this is leading.
The lack of cooperation between the city and county sadly has a long history. Who remembers the bickering over office space and parking spaces at the Law Enforcement Center? And how about the Library Wars of the late 90's? And these two entities are considering a merger? A spirit of teamwork is needed for what could be a great revenue maker for both Buchanan County and St. Joseph.
Posted by wildwest on August 14, 2008 at 2:47 a.m. (Suggest removal)Apmastrangelo- I completely understand about the business friendly enviroment and parking issue there. I actually sent a proposed plan about a year and half ago to help address both issues with a solution, of course it fell on deaf years. Don't know if I am the best person to be talking about parking issues, I used to write citations out for parking and code ordinances in another city in CA for years at a major city, but I do know that when I did that job citations were not the only venue, we were able to work with the public and find good solutions before it got to that point.
This Expo initiative is one I will support and if the county and the city get into a tiff about it, to me it is a waste of time and my tax dollars. There are too many other disputes holding things back that accomplish nothing. Like I said before a better solution is to find common ground and move forward with this together and make it into a productive venture. And yes there is risk involved with, there is risk involved with anything, but I am not against supporting risk with a tax initiative. Out of all the ideas I have heard out there for the future of St. Joseph, this one in my view has a very fresh approach and vision and an actual well thought out theme to pursue. Right now, I do not agree at all with how my tax dollars are presently spent, supporting a convention center that is not very aggressive in marketing, drawing in new business and increasing any potential it might still have. Or other issues out there, but I will support an innovative idea and project. I want to see this on the ballot and play out. As far as the legality issue goes, if the city chooses that course, than to me as a citizen of St Joseph, justify it. What I see now is a downtown that is being neglected of its full potential, an existing convention center that is never full or marketed very well, city officials, politicians, non-profit organizations, and small groups at odds with each other holding things back, not getting along, not being productive and wasting time on issues that get nowhere. And some of my tax dollars indirectly play into that.
Given a choice, I'd rather see my tax dollars go into a fresh and inovative project that by its own nature has risk, but also has alot of potential. Regardless, to me however that goes, it is a productive step forward instead of what occurs now here.
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