City Accepting Applications for Hotel-Motel Tax Fund Grant Program

The City of Cedar Rapids is now accepting applications for Fiscal Year 2027 and 2028 Hotel-Motel Tax Revenue Funds. Nearly $1 million will be available through the competitive application process covering the two-year funding cycle. Completed applications are due no later than 5 p.m. on Monday, May 18, 2026.

Learn More & Apply »

Eligible applicant entities may qualify for up to $50,000 per year in funding, or up to 10 percent of their annual revenues, whichever is less. These entities, with the exception of governmental entities, must be non-profit as recognized by the Internal Revenue Code of the United States to be eligible for the consideration of the allocation of these funds.

Funding recipients will be required to provide annual financial statements which demonstrate organizational health. Competitive applicants must demonstrate a clear public purpose for the funding as well as the organizational impact of their programming on local hotel and motel revenues.

"Every time a visitor books an overnight stay in Cedar Rapids, a portion of their lodging price comes back to the community, supporting local tourism and cultural opportunities," said Abhi Desphande, finance director for the City of Cedar Rapids. "We are pleased to offer this grant program again this cycle, supporting local nonprofits and City-owned venues that enhance our community's vibrancy."

Funding allocations are made after accounting for City debt and operations also paid for by the Hotel-Motel Tax. The Hotel-Motel Tax Ordinance places a 7-percent tax rate on the gross receipts of rental of any and all rooms, apartments, or sleeping quarters in any hotel, motel, inn, public lodging house, rooming house, tourist court, or in any place where sleeping accommodations are furnished to transient guests for rent. The tax applies only within the corporate boundaries of the City of Cedar Rapids, Iowa.