Local News

Council amends charter to allow lodging tax increases

11/4/2009 9:30:02 AM

Post-Bulletin, Rochester MN 

Since 2002, Rochester has collected a 4 percent lodging tax, and it turns out the city charter forbids it.

The fact was discovered recently by the city attorney's office in a review of the charter, the founding document of the city which serves roughly the same role on the local level as the U.S. Constitution does the country.

Charter Chapter 10 authorizes a lodging tax "not to exceed three percent." The provision dates to the early 1970s.

In 2002, the Legislature authorized Rochester's proposed 1 percent lodging tax increase, to 4 percent. That legislation stated the approval was "notwithstanding ... any other law." In other words, the city attorney's office concluded, the Legislature's words trump the charter.

Just to be on the safe side, though, the city council voted to request the Charter Commission to consider repealing that section of the charter.

The city is proposing another 1 percent increase in the lodging tax to fund an expansion at Mayo Civic Center. The city also plans to impose a 1 percent food and beverage tax to help pay its $37.5 million share of the $75 million expansion.

The Legislature will vote on its portion of the funding during the 2010 legislative session.

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