MEDICINE PARK –The Medicine Park Economic Development Authority plans to buy software that will help the town adopt standard procedures for collecting and reporting lodging tax revenue.
The authority voted unanimously Feb. 13 to approve a contract with IworQ Systems, a Utah-based software company that helps municipal governments manage their day-today operations. The authority decided it would cover 40% of the cost, which includes a $1,600 one-time set-up fee and a $2,800 annual subscription fee.
Under this arrangement, the Public Works Authority would have covered another 40% of the cost, and Parks and Recreation would have been responsible for 10%.The town would have tapped its rainy-day fund for the remaining 10% of the cost.
The Medicine Park Public Works Authority discussed the contract on Feb. 20 and decided to cover the entire cost, including MPEDA’s share. Lodging tax collections Ninety-eight short-term rentals are listed in Medicine Park, but only 75 of them are registered with the town, according to IWorQ’s preliminary report. That means 23 short-term rentals are considered noncompliant.
The town could see an additional $31,050 in revenue each year if those properties were brought into compliance, according to the report.
If the town decides to move forward with the contract, IWorQ will assign a senior account manager and a dedicated team to oversee implementation of the software, according to the contract. The goal is to have the system up and running in fewer than 60 days.
Account managers will call the town twice a week, provide remote training on the software once a week and email weekly summaries to town officials.
Authority member Candace McCoy said she thought the software would make it easier for the town to collect and report lodging tax revenue.
“I’m so excited about it,” she said. “I really am, and I’m thankful everybody took the time to look at it.”
Another board member, Noel Alsbrook, said he thought the town should buy the software. However, he said he did not think MPEDA could legally approve the IWorQ contract, since the board does not collect the lodging tax.
“The thing is, we don’t have the legal authority to enter this contract with them,” Alsbrook said. “It is the town that has to do this.”
The board’s chairman, Matt Latham, noted that MPEDA receives 40% of the proceeds from the lodging tax. Consequently, he proposed splitting the cost of the contract among the board of trustees, MPEDA, the Public Works Authority, Parks and Recreation and the town’s rainyday fund.
“I think each of those entities should have to pay their share of it,” Latham said.