The intention of the hotel motel tax is to offset costs associated with visitors to a community and grow tourism in the future through tourism marketing. Many of our local municipalities collaborate to help their tax dollar go further by investing in the Okoboji Tourism Committee to market the entire county and all communities within it under the well-established brand, Vacation Okoboji.
Iowa law provides that each government entity must spend at least fifty percent of its Hotel-Motel Tax Revenue on tourism related activity (that includes tourism marketing provided by Okoboji Tourism) while the remaining fifty percent can be used in its general fund.
All lodging in Iowa is taxed by a five percent excise tax. Then each community with a lodging facility can add an additional tax: Okoboji, Spirit Lake and the unincorporated areas of Dickinson County charge an additional five percent for a total of ten percent lodging tax. Arnolds Park, Milford, Wahpeton, and West Okoboji charge seven percent additional for a total of twelve percent lodging tax.
The Fiscal Year 2022 Hotel – Motel Sales Tax by community and the amount
contributed to Okoboji Tourism:
Arnolds Park - H-M Annual Revenue $1,128, 710 – Okoboji Tourism receives $240,000.
Okoboji - H-M Annual Revenue $271,883 – Okoboji Tourism receives $75,000.
Dickinson County - H-M Annual Revenue $242,882– Okoboji Tourism receives $32,982.
Spirit Lake - H-M Annual Revenue $151,812 – Okoboji Tourism receives $18,000.
Milford - H-M Annual Revenue $73,810 – Okoboji Tourism receives $5,000.
Wahpeton – H-M Annual Revenue $60,473 – Okoboji Tourism receives zero.
West Okoboji - H-M Annual Revenue $16,011 – Okoboji Tourism receives zero.