Officials hope room tax will boost tourism
EDGERTON The Edgerton Area Chamber of Commerce hopes charging more for hotel rooms will help bring in more overnight visitors.
The chamber has proposed a 5 percent tax on hotel rooms in Edgerton, Fulton Township and Albion Township to collect money for promoting tourism.
“I have never been one that has been in favor of taxation; however, we don’t have the promotional dollars to help promote our area,” said Kim Schuetz, chamber vice-president and head of the subcommittee promoting the idea.
If the municipalities agree, the tax would affect:
-- Towne Edge Motel, Edgerton.
-- Comfort Inn, Fulton Township.
-- Coachman’s Golf Resort, Albion Township.
The Edgerton City Council passed a first reading of the ordinance July 21, and the chamber is working with the Fulton and Albion town boards on the issue, Schuetz said.
Of the money collected, 75 percent would go for tourism promotion. Another 20 percent would go to the municipalities, and 5 percent would go back to the innkeepers.
The communities would establish a commission with representatives from the hotels and municipalities to decide how to spend the money, Schuetz said.
Right now, the only money used to promote tourism in Edgerton comes from the chamber’s budget—about $4,000 a year, Schuetz said.
“This would dramatically increase our ability to reach outside the area,” she said.
The money would be used to attract visitors who likely would stay overnight, she said. The commission could use a Web site and print advertising to promote multi-day events such as Tobacco Heritage Days and the Sterling North Book & Film Festival.
Increased tourism would help businesses all over southern Wisconsin, Edgerton Mayor Erik Thompson said.
“Down the road, it’ll help Edgerton out,” he said.
But Evan Sayre, Fulton town chairman, isn’t too sure. He believes once the communities took their share and the commission hired an administrator, there wouldn’t be much money left for advertising.
If the advertising were really needed, the hotels would already do it on their own, he said.
At least one local motel owner also doesn’t support the idea.
Gurdiel Dhillon, owner of Towne Edge Motel, said customers come to his business because of its low price. He fears some won’t be able to afford a 5 percent increase.
“This is a very small motel, and the people, when they come, it’s hard for them to pay the minimum amount,” he said.
But Lydia Moore, president of Coachman’s Golf Resort, expressed cautious support for the proposal.
“I think the chamber of commerce could definitely use income to help the tourism trade,” she said. “I guess the only concern is what our customers will think.”
A representative from Comfort Inn declined to comment on the proposal.
Schuetz doesn’t believe the tax will deter visitors because room taxes are common around the state, she said. Janesville, Beloit and Evansville all charge room taxes of 7 percent or 8 percent.
“When people come to locations like the Comfort Inn, they anticipate paying a room tax,” Schuetz said.
Aug 4, 2008 at 1:20 p.m.
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Let's face it, Edgerton can spend as much as they like on advertising and it won't make an ant hill of difference. Until they do ALOT of changing and all the, "good ol' boys" are gone, it will remain the same nothing town. Perhaps ciy council is getting their "sticky fingers" in the pot to finish the white elephant that they started.
Aug 4, 2008 at 10:36 a.m.
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Ktaustin:
A Bromide is a platitude a weak argument. You can read the definition below.
http://dictionary.reference.com/browse/b...
But the point is you cannot raise taxes without impunity. If this were the case, we could tax ourself rich. What are the vacancy rates in hotels/motels in edgerton? Is tourism booming to the point at which inn keepers can raise rates without suffering higher vacancy rates?
Currently, Edgerton spends 4000 per year on tourism promotion. What are the results of this effort? How is this marketing spend measured? Where is it spent? Why wouldnt 95% of this new tax go to promote tourism? Why only 75%?
The inn keeper will pass this tax onto the cost of its guests. The city will excise this tax based on the number of guest rooms, therefore, if an inn keeper does not sell out consistently, he/she will have to increase nightly roomrates to accomodate the new tax to offset the revenue lost to this new tax. The inn keeper may have to raise nightly rates significantly more to pay for this new tax.
The unintended consequence is less tourism.
Aug 4, 2008 at 9:33 a.m.
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the article again is poorly written. doesnt make since to tax more and they will come. i think what they reaLLY mean is if we tax more we can advertize more i guess.
Aug 4, 2008 at 9:17 a.m.
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SmithJones - I'm sorry to hear your dog ate your iconic toast. You were truly double blessed with that manna. Any graphics shop with a laser engraver should be able to get you a new one.
If the comments here represent what the majority desires, the majority desires NO NEW TAXES. Of course, we live in a republic, which respects the needs of minorities, too.
Aug 4, 2008 at 8:53 a.m.
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I had a piece of toast with a figure of Jesus burned on one side and the Virgin Mary on the other. I was on a conference call working out a sweet deal with the National Inquirer and the Edgerton Chamber of Commerce when my dog ate it.
Aug 4, 2008 at 7:42 a.m.
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I’d be the last to endorse a tax – any tax – but this is a fairly minor impact item. The Comfort Inn is advertising rooms from $85, so the 5% tax would add $4.25 per night.
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What’s interesting is that the Council backdoors some of the money for themselves. If promoting tourism is a really good idea, then 100% of the tax should be used for that. But noooooo, 20% will stick to their greedy little fingers. And why exactly would 5% go back to the hotels? Isn’t that another word for kickback? If the hotels thought they needed to raise their rates, do they really need the Council to step in and help?
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And then, as others have pointed out, comes the problem of promoting tourism. What to do with the money? If they do like most cities, they will hire a “consulting firm” who, for a million bucks or so, will hopefully clue them in that there are no real tourism prospects in their lovely little town. But, feeling a need to show something for all that money, they will produce a 400 page report to summarize the dreary prospects, and perhaps deliver some pithy tourist slogans. You know, something like:
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“Edgerton: You May Have Been Here Already, and Never Known It.”
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“Come to Edgerton, When You Want to Get Away From it All, and Do Absolutely Nothing When You Get Here.”
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“Edgerton: Just Like a Ghost Town, But With a Couple of People Thrown In.”
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I plan to keep my eyes open, and get my bid in when that contract hits the streets!
Aug 4, 2008 at 3:41 a.m.
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How can charging more for a room in a town that virtually has nothing to offer the general public benefit from a room tax ? I think someone on this committee should re-think their idea and come up with a better one - quickly! Or if the committee can not figure anything else out, why not ask the citizen od Edgerton. I am sure that have more common sense than this committee.
Aug 4, 2008 at 2:55 a.m.
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Using this logic, Boosting homeowner's tax will boost home ownership, boosting payroll tax will increase pay, boosting sales tax will increase sales, boosting cigarette tax will increase smoking. We must be living in a worker's paradise.
Aug 3, 2008 at 10:44 p.m.
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Happycamper is correct in that Edgerton doesn't have much of anything to promote for tourism. The real question is what should the Edgerton Chamber of Commerce promoting? I don't think it should be tourism.
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Edgerton is a quiet little town. My grandparents moved to Edgerton when they retired from farming. If Edgerton residents get the urge to shop, Janesville's Milton avenue is a 20 minute drive. The Interstate is handy if people are looking for a quiet bedroom community to live in while working in Madison. Edgerton has a hospital and the library was recently upgraded.
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The City of Edgerton should pass on the room tax and the motels should post big signs advertising NO ROOM TAX! The Chamber of Commerce should quietly advertise "We are NOT a tourist destination."
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Aug 3, 2008 at 10:23 p.m.
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Username has the right idea, promote the places without the tax and that very likely will bring in more people. I have traveled extensively across this great country of ours and I will tell you, I always have asked what the hotel / motel tax was. There were a good many times I stayed where there was no tax and at times it may have even cost me a bit more. I despise taxation without representation that much!
I am truly amazed at what the proponents are saying: [“I have never been one that has been in favor of taxation; however, we don’t have the promotional dollars to help promote our area,” said Kim Schuetz, chamber vice-president and head of the subcommittee promoting the idea.] Let me guess, she does not own one of the places affected? How about she add the percentage she wants for a tax on the bills of her customers and then pass that on to the chamber? Better yet, all those in favor could do that on their own couldn’t they? Oh wait, we can’t ask them to do something they want to force onto others.
The Mayor says Increased tourism would help businesses all over southern Wisconsin. So three businesses have to raise what customers have been paying to benefit Edgerton and businesses all over southern Wisconsin. How about them businesses being responsible for themselves?
Wonder how the businesses not affected would like it if the motel / hotel people implemented taxes on non motel / hotel businesses?????
Evan Sayre, Fulton town chairman and Gurdiel Dhillon, owner of Towne Edge Motel hold your ground, believe me, it does make a difference. And once they get the door open their will be no limit. They better be talking to the campground owners before they pass this tax because a trend has now started to tax their customers too!!! They are always looking to tax those who have no say. Who is next?
Aug 3, 2008 at 8:59 p.m.
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Ms. Schultz, what does Edgerton have to promote? Bar's, Restaurants and empty tobacco factory? In order to promote something you have to have something to promote in the first place. We have a nice auditorium that I feel could be utilized better than it is. Most of the stuff they have at the auditorium is geared towards the older folks and nothing for the younger ones. Last year they had country legend Roy Clark perform there, but again it was geared towards older people. Why can't the city counsel spend the money to get quality performer's that would draw different age groups. Why not have popular plays there that would run for a week. It takes money to make money and right now Edgerton has nothing to offer so why promote what it does not have.
Aug 3, 2008 at 8:54 p.m.
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Maybe they could just put a toll booth up between the Newville I90 bridge and the Highway 51 Oaisis. That might work better! (Still laughing).
Aug 3, 2008 at 8:50 p.m.
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LOL!! I had to read the first line of the article twice before I realized it REALLY said Edgerton was charging MORE to bring in MORE overnight visitors. Shhh, don't tell the visitors this though.
Aug 3, 2008 at 8:07 p.m.
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It's a double edged sword but, to attract you have to have something to offer. Sterling North does'nt cut it these days, hopefully someone see's Jesus' face on toast.
Aug 3, 2008 at 5:53 p.m.
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Uh yeah ... this is the most logical thing I have ever heard, "We will get MORE people coming here if we charge them MORE money!"
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Sorry, but no. That SHOULD be inversely related. Hint hint: Lower the cost = More people can afford to come; Raise the cost = Less people can afford to come.
Aug 3, 2008 at 5:04 p.m.
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TCB, what/who is bromide, besides a bromine containing compound?
Really, this just reminds me that hotel taxes are ridiculous to begin with. I don't travel often, so when I do make reservations and plan for the quoted rate, I am always surprised at how much more the taxes are (because I expect the standard 5% sales).
This is a minor point, but why are they planning to tax 5%, and then give 5% of the tax back to the inn-keepers? Why not just change the 5% tax to a 4.75% tax?
Aug 3, 2008 at 4:53 p.m.
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Edgerton Wisconsin isn't a tourist destination is it?
Aug 3, 2008 at 4:06 p.m.
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Here is a thought for Edgerton. Why not promote that the motels in your area are tax free from a room tax. I think people may take more note of that. The first solution that always comes up when a city or county needs more $$ is "hey what about a tax.."
Aug 3, 2008 at 1:15 p.m.
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Leave it to Edgerton..."charging more will help bring in more tourist's"...what am I missing here? Besides, what in the world is there is Edgerton for people to come to.
Aug 3, 2008 at 1:07 p.m.
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Wouldn't it be cheaper if someone from Edgerton simply proclaim a picture of Jesus is burned into their toast? Stewy took my first comment.
Aug 3, 2008 at 12:52 p.m.
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Higher prices should attract more people?
Aug 3, 2008 at 12:16 p.m.
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The state and U.S. law is soooo limiting in that it won't let city and town councils tax property outside its boundaries and it won't let them tax commerce that isn't done within their borders.
But here is the Holy Grail of tax and spenders, leveling a tax on people that don't live here and can't vote here and therefore when they complain, can be safely ignored. The Chamber of Commerce apparently likes the idea because they can use the OPM (other people's money) to promote their businesses at no cost to them.
It's like manna from heaven. And if the motels experience a loss of business, tough luck.
Aug 3, 2008 at 11:31 a.m.
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What kind of tourism do they expect to get in Edgerton? There isn't much there and if there was shouldn't that be the businesses responsibility to attract people?
Aug 3, 2008 at 11:17 a.m.
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That's a good message for bringing business's to town too. "We will tax you if you come." Oh sorry... that's the state message.
Aug 3, 2008 at 10:39 a.m.
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common sense should be a requirement to run for public office.
Aug 3, 2008 at 10:14 a.m.
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Tax 'em that's a good solution to tourism.
Aug 3, 2008 at 9:57 a.m.
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The bromide: "that what you tax you ge less of, that what you incentivize you get more of"
So please tell me agan how making it more expensive to travelers is going to incentivize tourism?
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