HomeMy WebLinkAbout5.2a Q4 Lodging Tax Revenue Memo
TO: Board of Directors, Cottage Grove Convention and Visitors Bureau
FROM: Jaime Mann, Assistant to the City Administrator
DATE: February 18, 2022
RE: 2021 Quarter 4 Lodging Tax Revenue
Background
Beginning May 1, 2020 all facilities and establishments within the City of Cottage Grove city limits
that are classified as a hotel, motel, rooming house, tourist court, or resort, other than the renting
or leasing of it for a continuous period of 30 days or more had to start imposing a 3% tax on the
gross receipts from the furnishing of lodging. The funds will be collected quarterly and used to
fund the Cottage Grove Convention and Visitors Bureau. The collections have a due date of thirty
days following the dates listed below:
1st Quarter - April 1st
2nd Quarter - July 1st
3rd Quarter - October 1st
4th Quarter - January 1st
Discussion
Due to the current COVID-19 pandemic and its effects on the lodging industry, the 2021 budget
used conservative monthly revenue estimates of $3,686 in lodging tax collections for each
quarter of 2021. This is based on a 40% occupancy rate and would equate to $11,058 in
lodging tax collections per quarter. In January, the City of Cottage Grove collected the 4th
quarter 2021 lodging tax and received the following amounts:
Table 1: 4th Quarter Lodging Tax Collections for the City of Cottage Grove
The lodging tax collections for the 4th quarter of 2021 were $14,763 from lodging tax revenue
which is $3,705 or 33.5% over our projection. This brings our total revenue collected for 2021 to
$59,987 which is $15,755 or 35.6% over our budgeted amount.
Recommendation
Receive the 2021 quarter 4 budget update.
Q1 Q2 Q3 Q4 Total
Lodging Tax Revenue 9,468$ 15,077$ 19,680$ 14,763$ 58,987$
Other Revenue -1,000$ -$ -$ 1,000$
2021 Total Revenue 9,468$ 16,077$ 19,680$ 14,763$ 59,987$
2021 Budgeted 11,058$ 11,058$ 11,058$ 11,058$ 44,232$