A very pinpointed tax

September 17, 2007: The then-Super 8 in Rock Valley has been the town’s only motel, but has since lost its franchise tag. Of the out-of-the-way places I’ve stayed in Iowa, this is one of them.

Rock Valley is one of the few non-suburbs in Iowa showing population growth. It’s in the far northwest corner of the state that’s shown ticks upward in school enrollment. It’s growing so much that it’s looking at a big-city revenue generator: a hotel-motel tax.

KIWA Radio reports that city voters will decide whether to impose the tax in March. What prompted this? Very likely the impending opening of the town’s second motel. A GrandStay Hotel & Suites is mentioned in the story, and a website says one is coming in spring.

So this tax is targeted at two businesses — or rather, the patrons of two businesses — one of which isn’t part of a chain anymore (see photo).

On the one hand, if a city is lucky enough to have a lodging sector, this is certainly one way to raise revenue. On the other hand, the only tactics that more openly milk out-of-towners while not affecting locals as much are toll roads that charge non-pass-holders more and the batch of taxes and surcharges awaiting anyone and anything connected to an airport.

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