WIUM Tristates Public Radio

Lee County Warns of Hotel/Motel Fee

Feb 28, 2014

The continued growth of a future Lee County industry could turn some residents into temporary hotel/motel "owners."

The groundbreaking for Iowa Fertilizer Company
Credit Jason Parrott / Tri States Public Radio

Iowa Fertilizer Company has crossed the 1,000 employee mark at the site of its future plant near Wever and many more workers will be coming to the area in the next few month.

Lee County Auditor Denise Fraise says she was recently contacted by a resident who plans to rent out rooms to the workers.

She says if that happens, the property owner will have to charge a 5% state sales tax and a 7% local hotel-motel tax if a room is rented for less than 31 days.

The taxes are not necessary if a room is rented for more than 31 days.

Fraise says property owners must also register with the Iowa Department of Revenue.

A special website has been developed that lists available homes, condos and even spare rooms near the site of Iowa Fertilizer Company’s plant.