Bill To Raise BID Tax
Local News
by
Kyle Horan
last edited on
Thursday, January 26, 2012
A bill in the state legislature is looking to raise the business improvement district tax from $2 to $5.
The Rapid City Bid Board of Directors met Thursday to discuss that bill.
Senate bill 110 would increase the maximum occupational tax that may be imposed on transient guests for bids.
That tax only applies to hotels with rooms of 50 or more.
In recent years, the tax money from the bid tax would go to fund marketing and advertising for the Rapid City Convention and Visitor's Bureau.
Michelle Lintz of Rapid City Convention & Visitors Bureau says, "Our bid has spoken extensively over the past few years. It’s been very, very successful, the additional two dollars per room per night since 2006. We have used all of that, 100% of that money for marketing and advertising over the past few years and it has been very successful, so their thought that if we were to raise the bid to say $3 and use that for marketing they would be very happy to do that."
While the Bid Board would like to see a tax increase, they would prefer the funds be used to advance marketing.