ROLLA HOTEL/MOTEL TAX
A 3% hotel/motel tax is levied on overnight stays at lodging properties within the city limits of Rolla, MO. This revenue is legislated to enhance tourism promotion endeavors in Rolla, including the operation of the Rolla Visitor Center situated at 1311 Kingshighway and marketing initiatives aimed at attracting visitors to the Rolla area. Rolla’s hotel/motel tax assessment was passed in April 1993.
WHO PAYS THE TAX
The Hotel/Motel Tax is paid exclusively by patrons of Rolla’s hotels and motels. This tax does not apply to vacation rental homes (examples: Airbnb, VRBO). It does not apply to City residents or property owners, and will not affect locals unless they stay in a Rolla hotel or motel. Rooms rented to individuals for over 31 days are exempt from the tax.
WHAT IS A HOTEL/MOTEL TAX
Other states and communities may refer to this tax assessment as lodging, occupancy, bed, guest, guest transient, or tourism tax. The tax is paid by transient guests for sleeping accommodations above and beyond city, county, and state tax, regardless of a guest’s tax-exempt status. This is because transient taxes are specifically levied to fund local services and projects, such as tourism promotion efforts, infrastructure maintenance, or other community developments. Therefore, even if you are tax-exempt for other types of taxes, you may still be required to pay transient taxes when staying in accommodations subject to such levies in Missouri.
THE HISTORY
In 1991/92, the Rolla Area Chamber of Commerce started the conversation with the City of Rolla about imposing a hotel tax for tourism efforts, to include building a Visitor Center. Rolla’s legislation was written to impose up to 5%. The Chamber decided that 3% would be sufficient at the time, and if needed, voters could raise the tax to the full 5% at a later date. In April of 1993 the tax was passed by the citizens of Rolla. For over 30 years, the City of Rolla has contracted with the Rolla Chamber of Commerce to administer the tax, which includes promoting and marketing Rolla through various efforts and managing the 10-acre tract of land at 1311 Kingshighway, the Rolla Visitor Center, and the 5 historic buildings on the property.
PROPOSED MOTEL TAX INCREASE TO 5% – WHAT THIS MEANS
The Rolla Chamber is proposing an increase in the motel tax from 3% to 5% and is seeking voter approval for this change. This increase will allow the Chamber to expand its marketing efforts, helping Rolla stay competitive with other Missouri communities that are also increasing their tourism efforts. It’s crucial for Rolla to attract groups and travelers to retain tourism spending, which is essential for the city’s growth. The additional funds from the tax increase will enable reinvestment and recruitment in tourism attractions, business and organizational conferences, sporting events and tournaments, historic landmarks, and increased grants for organizations hosting events in Rolla.
Moreover, we are eligible for grant funding for marketing projects but are required to match 50% of the funds. Currently, our limited revenue restricts our ability to take full advantage of these grants. With the increased revenue from the tax increase, we will be eligible for more grant funds, significantly boosting our marketing capabilities and overall tourism development.
Paid for by Rolla Area Chamber of Commerce, Stevie Kearse, Executive Director, 1311 Kingshighway, Rolla, MO