FOND DU LAC (NBC 26) — For hotels in Fond du Lac, the bed tax now looks a little different.
Hotel operators can't have a debt to the city and receive a license to operate the hotel, according to City Manager Joe Moore.
A bed tax is a percentage paid to the city whenever a guest stays in a hotel room. Currently in Fond du Lac, that rate is set at 8%.
"The only way we the city know how much has been collected is by reports that the hotels are providing," Moore said.
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Moore says a small number of hotels were either not fully reporting their respective bed tax or were off on their calculations.
That's why he says proactive measures were taken beyond simply imposing a fine.
"We do the same thing for alcohol licenses in the city," Moore said. "With that connection with indebtedness."
Moore indicated the money from the tax is then collected by the city and used to fully fund Fond du Lac's tourism bureau called Destination Lake Winnebago Region.
President of Destination Lake Winnebago Region Craig Molitor says they operate on roughly $1 million that is all collected from the bed tax.
"Its important for our own bookkeeping purposes to make sure that cadence is adhered to and that its a fair and level playing field for all the hoteliers," Molitor said.
He says reception from the hotel community on the change has been positive.
"It's really just a reminder to play by the same rules," Molitor said.
Molitor also stated he hopes other communities use Fond du Lac as an example to implement guardrails to protect the bed tax and the growth of local tourism.
