Village on track for boost from room taxes

The Village of Grafton is on track to collect significantly more in room tax revenue this year than in 2018. 

During the first six months of 2018, the village collected $90,677 in room tax. At the same point this year, the village received $180,818.

By the end of 2018, the village received $321,894 in room taxes.

The increase is attributed to an addition of a third hotel, Marriott TownePlace Suites, which opened in July 2018. 

Village Finance Director Paul Styduhar told the Finance Committee last week that he expects the village to receive 10% to 15% more annually in room tax with the addition of the hotel.

“TownePlace Suites is a great addition to our community because it meets a different kind of need relative to hotel and motel stays,” Grafton Area Chamber of Commerce Executive Director Pam King said, noting the hotel provides long-term stays for employees visiting the area and families using the Aurora Medical Center in Grafton.

State law requires municipalities that collect a local room tax to forward 70% of that revenue to a tourism entity, such as the Grafton Chamber. King said the money is used to enhance  tourism assets, such as the Ozaukee Interurban Trail. 

“Our next step is to work on strategically placing directional markers and assets like benches and garbage cans to enhance the Ozaukee Interurban Trail,” she said.

The Chamber also uses room-tax revenue to promote tourism, mostly through marketing and publications such as the Chamber’s podcast series, Get Away to Grafton, which is in its second year. 

A long-term project the Chamber is working on is developing a village park on the corner of 12th Avenue and Falls Road, where the Paramount Blues Trail marker is located.

“That’s a multi-tiered, very expensive project that we are working on to redevelop that park as an asset,” King said. “We want to take advantage of our Paramount blues history.”