The City of Monticello is now in the tourism business. The City Council by a 4 to 2 vote funded a new Tourism Commission at Monday’s Council meeting and enacted a 3% Restaurant Tax to fund the Commission and it’s activities.
The Tax goes into effect June first on purchases of food at restaurants, coffee shops, cafeterias, short order cafes, grills, street vendors and catering kitchens.
The Council heard a lengthy presentation on the Restaurant Tax and its potential benefits to the City before voting on the issue. Council members Jamie Reagan, Alan Hopper, Cody Dishman, Rachel Chaplin voted in favor of the tax, while Alan Vaughn and Tracy Sexton voted no. The Council was given a sample budget based on other tourism commissions in surrounding areas including $500,000 in estimated revenues per year from the tax with proposed Tourism expenditures of $65,000 annually for salary and benefits of a director, $100,000 on events at AJ Lloyd, also $75,000 on sponsorships, and $30,000 on marketing and supplies and $30,000 on Trade Shows and travel
Cities of the previous fourth and fifth class are authorized by KRS 91A.400 to levy a tax on restaurant sales to fund local tourism commissions. All money received from a restaurant tax must be turned over to the community’s tourism and convention commission. A consolidated local government is authorized by KRS 153.460 to impose a restaurant tax to fund the operating costs of a multipurpose arena.
Only around 20% of cities allowed to levy a restaurant tax have chosen to do so. Although restaurant taxes accounted for only 1% of total tax collections, they provided $28.7 million in revenue in FY 2021.
For more information on the Restaurant Tax go to: https://www.klc.org/InfoCentral/Detail/41/restaurant-tax
The Council also voted 6 to zero to pass a resolution to move the AJ Lloyd project to the bidding phase. It was revealed in addition to the 4 million dollars received in grant funding, the City will have to pay an estimated $800,000 on the project.
The Council voted to partially fund a Mobile Forensic Unit for the MPD. The City’s portion of the cost would be $4285, while grant funding would be $3200. The Unit could be used by City Police as well as the Wayne County Sheriffs Department in their investigations.
You are reminded with Monticello Market Downtown this Saturday, this year’s events will see the entire square and downtown streets closed.