The city of Lancaster is pursuing the adoption of a room tax to promote marketing and tourism.
Currently, the city provides $10,000 to the Lancaster Chamber of Commerce to support its efforts to market the city. State law allows municipalities to levy a 3 percent to 8 percent tax on hotel and motel rooms, as long as 70 percent of the tax revenues are used to promote the city.
In Grant County, Boscobel and Platteville have a room tax.
City administration and Chamber of Commerce officials have met with the owners of the Pine Grove Motel and the Best Western Hotel to discuss the room tax. Plans are to develop a "memorandum of Understanding" to clarify the intended use of the revenues.
The Lancaster City Council took no action on the proposed room tax at its September meeting.
