The Jefferson City Council approved a set of policies to distribute funds from the seven percent hotel and motel tax.

A committee, made up of council members and other city positions, recommended to keep the distribution of 80 percent of the tax to go to promotion of tourism and convention businesses in the City and 20 percent to be directed to the Jefferson Parks and Recreation Department.

The committee also recommended a three tier system to divide out the 80 percent of the hotel and motel tax. The first tier would allow the Chamber of Commerce to receive up to $30,000 or 80 percent of the total hotel/motel tax received, whichever is less, to be used solely for promotion and encouragement of tourism and convention business in Jefferson.

After tier one is fulfilled, then funding can be distributed to tier two, which allows up to $20,000 or 80 percent of the excess gross of the tax, whichever is less, to be given to the Chamber for construction, paying the interest on debt incurred from construction or operation of a welcome center. If there is still money leftover after the first two tiers are fulfilled, then the third tier allows for any nonprofit organization to apply for funds for projects for the promotion of tourism.

Mayor Pro-Tem Harry Ahrenholtz says the policy is flexible to allow for the figures to change, but he likes the competitive aspect that tier three creates. However, he believes that it’s a fair policy.

“I think this policy is fair. I think it’s fair for all parties. I would have to say that the City, Council members (and) this committee is open to other suggestions. If somebody has a better idea, then we ought to take a hard look at it and if that means we have to change the policy, then we ought to be open minded enough to change that policy.”

Hotel/motel tax is expected to increase from about $35,000 to as much as $100,000 on an annual basis.