Even though several Crossville hotel operators showed up to express concern about the city's plan in increase the hotel/motel tax the city council approved the second resolution necessary to send the matter on to the General Assembly.
With the county's current tax at 7.5 percent, sales tax at 9.75 percent and an additional 3 percent proposed by the city the total tax on a hotel room in Crossville would be 20.25 percent. As of 2015, only one county in Tennessee had a higher hotel/motel tax rate than the amount that could be charged to visitors if the matter is approved.
City Council, city manager, and city attorney meet to
discuss the city's proposed hotel/motel tax.
The motion to approve the resolution for the second time as required in the state law was made by Councilman Danny Wyatt and seconded by councilman J. H. Graham.
David Padgett with the local Hampton Inn told the council while travelers just passing through might not be affected, his corporate clients would since they set budgets and if the cost rises they would likely cut back on their nights staying in Crossville. According to Padgett, the additional 3 percent city tax on top of the 17.25 percent for sales tax and the county hotel/motel tax represents a 17 percent increase in the tax on local hotel rooms. “That's pretty substantial,” added Padgett.
Crossville hotel operators came to express their thoughts
about the proposed tax. David Padgett of the Hampton Inn, center
spoke on behalf of other local hotel businesses
With the local market softer and Padgett saying his occupancy rate stands at 72.35 percent instead of the 85 percent of larger communities like Nashville, Knoxville, Pigeon Forge, areas that have more to offer in amenities outside of tourism like better restaurants and attractions.
“I'm actually OK with an increase, but let's phase it in over a while,” urged Padgett.
Mr. Graham outlined the reasons for the proposed action, “This tax, if approved by the General Assembly, will be used for the increase of tourism, to provide more events and more functions to attract more individuals to stay with us in this area.”
In comparison to the hotel/motel tax for Cookeville, they charge 15.75 percent total and have no city hotel/motel tax and are now 1.5 percent less than Crossville but that difference will increase to 4.5 percent less if the Crossville increase goes through. Mayor James Mayberry said he was not sure if that difference would save anyone money with the cost of driving from Cookeville to Crossville though the hotel operators pointed out that if a ball team or other group needed several rooms that difference would add up and could make the difference where people decide to stay.
City Manager Greg Wood said that one of the reasons the city is looking at the tax is because the county does not use revenue in the way the city plans to.
Council Member Pamala Harris said she could see both sides and that there were more things to do in Crossville than just the State Park and Golf.
The Crossville Cumberland Co. Sports and Event Committee was briefly discussed and Doug Parkey who is working to organize the group told the council that group planned to maximize the use of the facilities the city currently has, look at what possible facilities the community might need and recruiting sporting and other events to the community like festivals and concerts. Parkey pointed out that he expects there to be donations from businesses and others to support the council and that not all the funding would come from the new tax.
All four of the council members present voted in favor of the measure and sending the request for action to the state legislature. Councilman Scot Shanks was not present at the meeting.
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