The Mitchell City Council last night voted to kill an ordinance that would have raised the Business Improvement District #2 tax, or hotel tax, by 50 cents to $2.00 per room per night. “At this point, it sounds like the majority of the hotel owners are asking you not to move forward with this ordinance,” Mitchell City Attorney Justin Johnson told the council.
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.
Councilman Jeff Smith said the current $1.50 tax will be sufficient for the immediate future. “We do have a current BID in place, and it’s tied in with the swimming pool right now and the Sports and Events Authority.” City Administrator Stephanie Ellwein confirmed that the pool should be paid off under the current BID sometime in 2023.
Of the cities in South Dakota that implement a lodging tax, Mitchell’s is the lowest. The other cities have a $2.00 per room per night tax.
City Attorney Johnson says he is confident that details can be worked out with local hoteliers.