Cottage Grove discusses potential room tax reduction to boost hotel occupancy

The Cottage Grove Tourism Commission met on March 19, 2025, to discuss key issues affecting local tourism, including hotel occupancy rates and the impact of upcoming events like the NFL Draft.

One of the main topics was the anticipated influx of visitors for the NFL Draft in April. Local hotels are reportedly fully booked, with increased rates to accommodate the demand. This surge in tourism is expected to benefit the area significantly, as many visitors will likely seek accommodations outside the immediate vicinity of the event.

The commission also reviewed the 2024 room tax collection report, which indicated a total collection of $136,144 from various lodging entities, including hotels and short-term rentals like Airbnb. The current room tax rate stands at 8%, and the collection figures are consistent with previous years, suggesting stable tourism activity in Cottage Grove.

A notable discussion point was a request from Comfort Suites to consider amending the room tax percentage. The hotel management expressed concerns that high room rates could deter potential guests. While some commission members acknowledged the request, they emphasized the importance of maintaining funding for tourism marketing efforts, which could be compromised by a reduction in the room tax rate.

The commission concluded that while the request for a tax decrease merits consideration, it is crucial to balance the potential benefits of increased occupancy against the need for ongoing marketing support to attract visitors to the community. Further discussions on this topic are expected in future meetings as the commission seeks to enhance Cottage Grove's tourism appeal.