Ask Mr. Answer Person: "Does the City of Decorah get Hotel/Motel Tax money from AirbNb rentals in town?"

(decorahnews.com has been getting questions from a number of readers about AirbNb rentals and VRBO rentals in Decorah.  The most frequently asked question has been, "Do these properties pay hotel/motel taxes?"  So decorahnews.com has contacted State of Iowa staffers to get an official answer):

Mr. Answer Person says: "Yes, Decorah residents who rent out all or part of their houses to travelers have to pay the hotel/motel tax for Decorah.  Iowa Department of Revenue Chief Business Officer Nicole Watson says, "All rentals that include a bed must pay both sales tax and Hotel/Motel tax."  State code says, "The hotel/motel tax is imposed on the gross receipts from the renting of sleeping rooms, apartments, or sleeping quarters in any place where sleeping accommodations are furnished to transient guests."

The Iowa Department of Revenue does not break out the figures from AirbNb and VRBO separately, but it does show hotel/motel tax revenues by location.  The City of Decorah collected $318,461 in hotel/motel tax payments from the state in fiscal year 2015 and $354,718 in fiscal year 2016.  That represents more than an 11 percent increase in payments, so the impact of hotel/motel tax revenues continues to grow.