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| Post Number: 31
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hymiebravo 
Group: Members
Posts: 4989
Joined: Jan. 2006
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Posted on: Jan. 15 2009,5:25 pm |
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(scorenix @ Jan. 15 2009,5:12 pm)
QUOTE
(hymiebravo @ Jan. 15 2009,4:36 pm)
QUOTE CVB sounds like a bunch of shake down artists - like the mafia to me. lol And why is that? Because the law requires hotels to collect a 3% tax from the hotel paying guest to remit to the city of Albert Lea, and a 7% tax from the hotel paying guest to remit to the state of Minnesota. This is money that is paid on top of the hotel room rate. The hotel acts as a conduit for the tax collecting authorities. And if a hotel does not remit the tax, you think its simply okay for the hotel to keep the money to fund their day to day operations?
Jebus, is that why it costs $80.00 a night to stay at Holiday Inn Express.
I just think it's gouging. It just seems like another entity taking taxes. That the publc doesn't really have any say in.
I thought the mafia was the only organization that did that.
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| Post Number: 32
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| Post Number: 33
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scorenix
Group: Members
Posts: 1147
Joined: Dec. 2004
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Posted on: Jan. 15 2009,8:49 pm |
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So let's really break this down here:
If the room rate is $80 a night. The guest will pay the hotel $80, plus $5.60 for state taxes (or 7%), and $2.40 for city tax (or 3%). The hotel will thus collect $88 from the guest, and remit (send) the state $5.60, and the city $2.40. For those of you who venture out of your homes and go to other cities, you will see some locations go as high as a combined 17% of the room rate. BUT, the state and city tax is merely levied on the hotel room rate, and the hotel is obligated by law to collect this tax from the guest and remit to the proper authority. It is not for the hotel's keeping.
I am a little perplexed on this whole tax issue. Do you advocate that hotels not remit the tax money they are legally required to collect and remit?
If you'd like to have a further discussion on area hotel rates, and tourism in Albert Lea (conventions or lack of them), I 'd certainly be willing to talk further about it.
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"Here is something for those who think I have not done much on my own to think about. I must then be one of the luckiest people around, and I think I am, I should then be able to keep that same luck going for the benefit of our area." - New ALEDA Executive Director Dan Dorman.
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| Post Number: 34
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MADDOG
Group: Moderator
Posts: 7821
Joined: Aug. 2003
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Posted on: Jan. 15 2009,9:06 pm |
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Who is on the CV Board and what are they doing with the lodging tax they are collecting from each guest?
Afterall, isn't their job to draw people to town, not to tax them for coming?
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Actually my wife is especially happy when my google check arrives each month. Thanks to douchbags like you, I get paid just for getting you worked up. -Liberal
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| Post Number: 35
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GEOKARJO
Google This!!!
Group: Members
Posts: 7799
Joined: Aug. 2003
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Posted on: Jan. 15 2009,9:16 pm |
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I have asked this three times no..... what tourism / conventions have been brought to Albert Lea in 2008 that was the direct results of the efforts of the CVB of Albert Lea.
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| Post Number: 36
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hymiebravo
Group: Members
Posts: 4989
Joined: Jan. 2006
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Posted on: Jan. 15 2009,9:50 pm |
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QUOTE If the room rate is $80 a night. The guest will pay the hotel $80
Well first of all. I think that is a little steep for a hotel room of the caliber, of those two out that way. If I were visiting this area from abroad. I would probably stay at the Days Inn in Austin.
Last time I looked that was some where in the $35-45.00, range.
I've also noticed if you reserve rooms a long way out in advance. You can get that same kind of deal just about anywhere in the country. At simliarly priced/quality venues.
Or at least quite a few that I searched. I have to admit that I haven't looked in a while so maybe it's way off from that now.
QUOTE For those of you who venture out of your homes and go to other cities, you will see some locations go as high as a combined 17% of the room rate
Any examples? Without knowing I would say they are probably places who are in more of a position to get away with it.
QUOTE I am a little perplexed on this whole tax issue. Do you advocate that hotels not remit the tax money they are legally required to collect and remit?
I'm not. Like I said it seems like gouging. In light of all of these things we hear about taxes, water bills, etc. That just seems like that falls into THAT catagory.
Is there some other way of handling it? Could that be reduced.
What kind of a total dollar amount anually are we talking here?
I guess since you're basically the expert here. Those would be things I would ask you.
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| Post Number: 37
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scorenix
Group: Members
Posts: 1147
Joined: Dec. 2004
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Posted on: Jan. 15 2009,10:02 pm |
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(GEOKARJO @ Jan. 15 2009,9:16 pm)
QUOTE I have asked this three times no..... what tourism / conventions have been brought to Albert Lea in 2008 that was the direct results of the efforts of the CVB of Albert Lea.
Pick up the phone and call and ask Susie Peterson, the head of the CVB here in Albert Lea.
As far as who is on the CVB, I am. If you want additional contact names, call the CVB.
Even though I am on the CVB, I do not speak for the CVB, nor do I think I should. I am but one of several members. And my appointment came about as being the manager of the largest hotel company in Albert Lea.
When I give my opinion, it is my opinion, it is not the opinion of the CVB, nor should it be construed that way.
The city or occupancy tax was created by the state legislature, which allowed cities to create the "tourism" tax. I don't know of a city with a hotel that doesn't have the occupancy tax. Maybe, but I don't know of one. Austin does. It's 3%. So does Rochester.
The Albert Lea hospitality industry is doing quite well. So I will leave it to you to dissect why some struggle and others do not. It might have to do with traveler perception of value. While one might "bash" a hotel for charging $80, while another is only $60 and "gee, all I want is a bed", there are noticeable differences between area hotels.
I do sympathize with AL Inn. And I do wish Tonya well. Certainly you never want to see people struggle or come up short, especially those who take on the responsibilities of buying and running a business. I hope all works out for her.
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"Here is something for those who think I have not done much on my own to think about. I must then be one of the luckiest people around, and I think I am, I should then be able to keep that same luck going for the benefit of our area." - New ALEDA Executive Director Dan Dorman.
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| Post Number: 38
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minnow
Group: Members
Posts: 2243
Joined: Aug. 2003
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Posted on: Jan. 15 2009,10:05 pm |
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Just because you can tax, doesn't mean you should.
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| Post Number: 39
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hymiebravo
Group: Members
Posts: 4989
Joined: Jan. 2006
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Posted on: Jan. 15 2009,10:16 pm |
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How much money is this tax bringing in anually?
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| Post Number: 40
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scorenix
Group: Members
Posts: 1147
Joined: Dec. 2004
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Posted on: Jan. 15 2009,10:28 pm |
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(hymiebravo @ Jan. 15 2009,9:50 pm)
QUOTE [
Last time I looked that was some where in the $35-45.00, range.
I've also noticed if you reserve rooms a long way out in advance. You can get that same kind of deal just about anywhere in the country. At simliarly priced/quality venues.
Days Inn in Austin is $62 a night. That is their Quick Saver rate of 15% off.
So we are high? Consider:
Pillowtop beds that are still relatively new (we replaced all our beds at one time - a local hotel called us an asked if they could take the "better" beds because they wanted to replace some of the ones in their rooms).
A complimentary breakfast in the morning that includes bacon and eggs, sausage, biscuits and gravy, cinnamon rolls, assorted cereals, muffins, breads, etc.
20% more shower space with the kohler showerhead. A showerhead that really is that good, I've had guests ask where they can buy them, and I've given away a few as presents to some high occupancy guests.
Triple sheeting. The only hotel in Albert Lea that washes all of its sheets, including the bedspread, after every stay.
100% cotton towels. Oversized. Rotated out about every nine months.
We provide amenities that go beyond soap and shampoo.
Priority Club Rewards. It battles with Starwood and Marriott for program of the year (2 of the last three years). And no other area competitor comes close to Priority Club.
Four pillows per bed. Two soft, two firm.
I could go on, but that's why the difference in price. So for $20 more, you can stay with us, or drive 20 miles to Austin and stay at the Days Inn.
Regarding the tax. This is a tax put on the guest, not the hotel. And the hotel merely collects the tax and remits it to the proper authority.
How would you feel if Wal-Mart decided they no longer needed to remit sales tax to the state of Minnesota?
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"Here is something for those who think I have not done much on my own to think about. I must then be one of the luckiest people around, and I think I am, I should then be able to keep that same luck going for the benefit of our area." - New ALEDA Executive Director Dan Dorman.
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