Back Print
RSS

Ask Mr. Answer Person: "Does the Winneshiek Farmers Market pay rent to use city property?"

Posted: Wed, Jun 6, 2012 3:23 PM

Jim e-mails Mr. Answer Person: "I was wondering if the City of Decorah has any income from the Farmers Market?  I am a fan of the Farmers Market and spend money there frequently but was wondering why the City of Decorah is responsible for finding them a place?  Does the city receive rent?  Do they receive a portion of sales?  I'm sure there's no revenue from sales tax."

Mr. Answer Person says: "With the farmers market about to move across the street, your questions are timely.

First of all, the city does not receive rent from the Winneshiek Farmers Market.  The city council signed a lease with the farmers market allow them to use the space from May 1st until December 1st.  The farmers market is responsible for paying the cost of insurance coverage and for paying electricity and other costs.  That means it doesn't cost the City of Decorah any money to let the farmers market use the property.

The city also doesn't receive a percentage of sales from booths at the Winneshiek Farmers Market.  However, farmers market vendors are required to collect sales tax on the products they sell.  Those sales tax receipts are sent in to Des Moines, where the state rebates one percent of the revenue to the City of Decorah as local option sales tax revenues.  It's not a big amount of money, but it is some financial payment to the city.

Finally, Jim, you ask why the City of Decorah is responsible for finding the farmers market a place to do business.  The current location in the city's 48-hour parking lot is also home to the city's recycling bins, which makes for a crowded location at times, especially on Saturday mornings.  So city council members wanted to find a new location that would not only help the farmers market, but would help the recycling program.

As for the larger question of why city government is responsible for helping several businesses by providing rent free space, as opposed to requiring them to buy property that pays property taxes, this is a political debate and one that Mr. Answer Person will leave to you, the readers.