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Norwalk residents to vote on hotel/motel tax

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On Tuesday, Nov. 6, Norwalk residents will vote on whether to approve a 7 percent lodging tax.

“We don’t even have (a hotel, motel or bed-and-breakfast) proposed yet,” said City Administrator Mark Miller, “but in talking with other cities, it made sense to put it in before you have something in place.”

Miller said he surveyed four major hotel chains and was told by each that having a tax in place would not affect their choice of Norwalk as a potential site, provided the location met other demographic considerations.

Pleasant Hill, which enacted such a tax four years ago, has since had two hotels locate there, he noted. Norwalk would join 106 cities and 13 unincorporated areas in Iowa that currently impose the tax, the majority at the 7 percent rate.

By state statute, 50 percent of the tax would be used for capital improvements for recreation, convention, cultural or entertainment facilities. The revenue could also be used by the city for economic development projects, or marketing or other purposes permitted by law.