The city’s new lodging tax enacted in April of last year collected $373,859 by year’s end, or about $100,000 less than projected.
Woodbury city lodging tax raises less than expected
The new 3% lodging tax raises money that has to be used for city promotion as a tourist and convention destination.
The Minnesota Star Tribune
July 31, 2024 at 11:00AM
Woodbury city spokesperson Jason Egerstrom said pre-pandemic occupancy data suggested the lodging tax of 3% on gross receipts would raise more money, but he said hotels have yet to completely recover to those occupancy levels.
The tax was approved by the City Council in 2022, and went into effect on April 1 of last year. Per state statute, 95% of the funds raised must be used for the promotion of Woodbury as a tourist or convention destination.
The city is the state’s eighth largest, with 80,000 residents, 140 miles of multi-use trails, 3,100 acres of parks, and eight lakes. It’s home to the M Health Fairview Sports Center, Eagle Valley Golf Course, and shopping at Woodbury Lakes, CityPlace and Tamarack Village.
The city’s three-year strategic plan for the lodging tax revenue includes building a website, promoting local events and amenities, partnering with hotels and local businesses, and marketing Woodbury spots like the Eagle Valley Golf Course, city parks and sports facilities. The city also hired its Destination: Woodbury marketing manager Eric Satre in May.
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