Hotel / Motel Use Tax Tourism Grants

The City of Woodstock offers a Hotel/Motel Use Tax Tourism Grant aimed at supporting nonprofit organizations (NPOs) that host tourism-related events, attracting overnight visitors to the city. Woodstock is recognized as a cultural and entertainment hub within McHenry County, and its tourism initiatives significantly benefit the local economy and businesses. The grant is funded by a 5% Hotel/Motel Use Tax levied on all overnight stays within the city, with these funds being distributed through an annual competitive grant process. The grant supports local NPOs that develop and hold events or programs that drive tourism to Woodstock. These events not only generate economic activity but also enhance the quality of life for Woodstock residents by fostering a vibrant local culture. For fiscal year 2025/26, a new policy was introduced where organizations without 501(c)(3) or 501(c)(6) tax-exempt status must partner with an established nonprofit organization to apply. The partnering nonprofit will serve as the official applicant and manage the funds on behalf of the beneficiary organization. Applications for the grant are divided into two categories: Previously Funded Organizations (PFO) and Not Previously Funded Organizations (NPFO). Each category has a specific application form, and for organizations that received funding in FY 2024-25, there is an additional requirement to submit a final report for that fiscal year. The grant application process is highly structured, with clear guidelines and instructions provided for applicants. The City offers helpful documents to guide the process, including application forms, instructions, and other relevant resources. Applicants must submit their forms by specific deadlines, and there are also requirements for reporting on the outcomes of the projects funded in the previous fiscal year. The grant funding is competitive and intended to support events that enhance Woodstock's tourism appeal. Eligible organizations must meet the requirements outlined by the City, including those related to tax-exempt status and the type of events they organize. The City has set clear timelines for both application submissions and final reports, ensuring that both applicants and the City have a mutual understanding of key deadlines. Key deadlines include the submission of the FY 2025-26 grant applications, which must be submitted by 5:00 p.m. on Friday, March 21, 2025. The final report for FY 2024-25 is due by 5:00 p.m. on Friday, March 14, 2025, and the final report for FY 2025-26 is due by 5:00 p.m. on Friday, March 13, 2026. These dates are essential for applicants to meet to remain in compliance with the City’s application process.