A proposed increase to the Mitchell Business Improvement District tax may face resistance from some hotel owners. The hotel BID tax is currently $1.50 per night, which is the lowest among other cities in the state which have a similar tax. It was first implemented in 2013, has a sunset date, and has never been codified. An ordinance discussed by the Mitchell City Council on Monday night would change that and increase the amount to $2.00.
The council voted to continue the hearing on the ordinance after Mitchell attorney Don Petersen, who is representing several hotel owners, made that request.
The purpose of the tax is to provide funding towards activities and projects that benefit the city and lodging establishments located within the district by making the city a more attractive location to host sporting competitions, events, and generally encouraging those outside the community to visit and stay in Mitchell. Since its original creation, the tax has helped support Sports & Events Authority programs, construction and maintenance of a second sheet of ice at the Mitchell Activities Center, and construction and maintenance of the Indoor Aquatic Center.