Owner of Albert Lea hotels charged with lodging tax violations

Published 1:01 pm Thursday, October 24, 2024

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The owner of four Albert Lea hotels and motels has been charged with 10 counts of lodging tax violations from November 2023 through March 2024.

Mohamed Elkhateeb, 54, of Minneapolis, is the owner of Twin Cities Hospitality LLC in Minneapolis, which owns, Motel 6, Quality Inn and Econo Lodge in Albert Lea, and The Heritage Hotel in Minneapolis, which owns the Ramada in Albert Lea.

According to court documents, the city of Albert Lea imposes lodging tax obtained from the collection of tax imposed at the time rent is paid for lodging. The operator holds the tax in trust, files a lodging tax return indicating the amount of tax collected and the operator pays the city 95% of the amount received that is used to fund the Albert Lea Convention and Visitors Bureau to market and promote the city.

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Court documents state Elkhateeb was advised by letter March 26 that he was delinquent in filing the returns and that he was delinquent in paying the lodging tax from Nov. 1, 2023, through Feb. 29. Penalties were assessed for the delinquent returns.

Multiple letters and emails requesting the lodging tax and returns were sent to him in the subsequent weeks. Elkhateeb reportedly asked for multiple extensions, at one point stating the lack of snow affected business on his other properties that supplemented the Albert Lea properties.

The city received the payment for the lodging taxes on May 21, but Elkhateeb had reportedly not submitted the returns as required by city code at the time of the charges.

He was scheduled to appear in Freeborn County District Court on the charges on Wednesday but did not appear, and District Court Judge Christy Hormann issued a bench warrant.