Cook County News Herald

County will increase administrative fees on lodging taxes



On Tuesday, March 28, Cook County Auditor/Treasurer Braidy Powers told Cook County Commissioners he is sending a notification to Visit Cook County announcing that as of May 1, the county will collect five percent of the lodging taxes it receives as a way for the auditor’s office to recoup costs spent collecting and distributing those funds.

Minnesota Statute 469.190 requires that 95 percent of lodging taxes be sent to tourism bureaus and used for tourism or event promotion, with up to five percent of the tax kept for administrative fees. Since the inception of the lodging tax in the 1980s, Cook County has charged a one percent administration fee, only upping it to 1.5 percent in the past couple of years.

At five percent, the county will receive between $110,000 to $120,000 for the next year, said Powers, who estimated the county has collected $2.2 million to 2.4 million over the last two to three years for Visit Cook County when the county was taking 1.5 percent of the collections.

Powers said the fee was based on time spent by staff for “receipting funds, preparing a monthly report, and distributing the funds to the tourism bureaus and other tasks.” He added that this was a “minimal calculation of costs associated” with the work involved by his staff. However, Braidy said his office has gotten busier with the

Other tourist-rich areas like Duluth and Brainerd charge a five percent administrative fee to cover expenses associated with lodging taxes collections and distribution. Powers said, “Now that tourism has grown stronger and more stable, becoming a year-round industry, it’s time for the county to recognize and recoup more of its costs, also noting costs have increased in recent years with the complications that have come with the growth of the vacation rental market.”

County Administrator Janes Joerke presented an opioid settlement memorandum of agreement and resolution to the county board.

Joerke said the Minnesota attorney general’s office requested counties to “opt in to the current and future opioid settlement agreements to maximize the funding that the state and local governments will receive for substance abuse treatment, mitigation, and education programs.”

The settlements will provide the county with new resources to address substance abuse but will not impact the county levy, added Joerke.

In February 2022 four U.S. companies agreed to pay $26 billion to settle claims. Although they admitted no wrong doing, Johnson and Johnson will pay $5 billion while AmerisourceBergen, Cardinal Health and McKesson will pay a combined $21 billion.

The resolution authorizes county staff to execute all necessary documents to ensure county participation in the multi-state settlements, including the participation agreement, accompanying release, and the state sub-subdivision agreement.

The resolution starts, “Whereas the state of Minnesota counties and cities and their people have been harmed by misconduct committed by certain entities that engage in or have engaged in the manufacture, marketing, promotion, distribution, or dispensing of an opioid analgesic.”

Commissioners passed a resolution in support of the settlement memorandum agreement.

Jana Kokemiller-Berka has been hired as the Executive Administrative Assistant to fill an opening in the department. Many know Jana as the longtime WTIP office manager.

Jordan Porter was hired as the Community Service Officer and will work with the Cook County Sheriff ’s Office.

Commissioner’ s accepted the resignation of Cook County Deputy Sheriff Nellie Torgerson with regret.

Paul Stucker, Hovland, and Brian Sillman, Lutsen, were appointed to the Cook County Planning Commission effective immediately, and Paul Stucker was also appointed to the Board of Adjustment.

Commissioners agreed to support the Hovland Fire Department Grant application to the Minnesota State Fire Marshall for $3,779 to help cover the purchase of a Cicul-Aire Express Extractor. The Colville Fire Department will also benefit from the use of this equipment.

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