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Peru raises hotel motel tax rate in 4-3 council vote

By WCMY News May 24, 2022 | 5:31 AM

The hotel motel tax in Peru is going up. The city council voted 4-3 to raise the rate from 5.64% to 7.5%, or about three or four dollars more a night.

Alderman Tom Payton says he voted it against raising the tax for a couple of reasons. He says with inflation where it is and gas prices where they are, the optics don’t seem right to him at this time.

Alderman David Waldorf also voted against it because he says  there could always be another tax coming. And the city seems to be okay on their revenue sources.

Mayor Ken Kolowski broke a 3-3 tie by voting in favor of raising the tax. Alderman Jim Lukosus voted yes because the city could benefit more from the tax.

City Finance Director Justin Miller says according to current estimates, the city could make an extra $150,000 a year in revenue. Alderman Mike Sapienza and Aaron Buffo were not at the meeting and didn’t vote.