MINOT – The regular meeting of the City Council found councilmembers engaged in a lengthy discussion about the status of some hotels in the city and the city’s efforts to collect lodging tax.
City Manager Harold Stewart told the council that the City Auditor sometimes found it to be “difficult to get access to record” and that “trying to collect can be difficult.”
Lodging tax revenue is dispersed at the rate of 2/3rds to the city and 1/3 to the All-Seasons Arena. However, noted Stewart, problems in collecting the tax ranged from underreporting by hotels and, at times, no payment due ownership changing hands and new owners not assuming the responsibility of tax due.
Stewart said the amount of underreported lodging tax for the years 2020 and 2021 was more than $52,000. That money was eventually collected. In all, said Stewart, 21 hotels had underreported. Audits for 2022 and 2023 have not yet been completed.
Visit Minot Executive Director Stephanie Schoenrock told the council that six hotels were sold in the past five months, and another will soon be put on the auction block. Additionally, she said, there are hotels that do not operate as true hotels. They are extended stay but without amenities offered by regular hotels.
Schoenrock added that police calls at a few select hotels are up to 200 per year, while most hotels average less than 30 calls for police per year. She said Visit Minot had to assist some visitors disappointed with their reservations.
“During the Hostfest one elderly couple booked online, paid, showed up, and then called to say they couldn’t protect themselves and can’t stay at that hotel,” said Schoenrock.
Council Member Carrie Evans responded by saying, “There are a handful of hotels people are annoyed with. They are the ones with people who can’t afford housing or have criminal records. They are hotels housing addicts, homeless. Let’s talk about that issue because that’s really what this is about.”
Mayor Tom Ross added, “We’re spending a lot of time on police calls at those hotels. This is all a discussion. Unfortunately, those problem hotels are still online taking reservations.”
