Duluth Collects Record Tourism Tax Total, But Falls Short of Goal

Tax Is Collected From Restaurants, Bars, and Hotels to Improve City Tourism

DULUTH, Minn. – The City of Duluth brought in more money than ever through the tourism tax last year, but it was less than expected.

$11.62 million was collected from the tax in 2017, an increase from the previous year but about $100,000 short of the city’s goal.

Because of the shortfall, the city has budgeted for no growth to their tourism tax revenue this year.

“We want to provide some stability for the attractions that rely on that money so we did budget conservatively with a zero percent growth rate but I do expect us to continue to grow,” said Wayne Parson, Chief Financial Officer for the City of Duluth.

“When we continue to see growth, we see a lot of visitors to our town and they contribute to the new half percent sales tax that we hope to get this summer approved by the legislature,” added Parson.

The tourism tax is collected from Duluth restaurants, bars and hotels. The money is used to improve local tourism.

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