The Crossville City Council approved the first of 2 resolution votes required to request that the Tennessee General Assembly approve allowing the city to put a hotel/motel tax in effect.
In order to approve the resolution for the required second time and get the paperwork to Nashville, the council will hold another special called meeting on Thursday, January 25 at noon.
Currently, Cumberland County has a 7.5 percent hotel/motel tax that has been in effect for several years and under the Tennessee State law the city has been prohibited from adding a hotel/motel tax but recently some waivers have been added to the bill by the General Assembly allowing a way around the law.
City manager Greg Wood, left and 4 of 5 council members
discuss the addition of a citywide 3 percent hotel/motel
tax. Also pictured are council members J.H. Graham,
Danny Wyatt, Mayor James Mayberry, and Pamala Harris.
Council member Scot Shanks was not present.
Councilman Danny Wyatt proposed the action to add a 3 percent city hotel/motel tax with the revenue to be earmarked for economic development and tourism. The resolution would request a change in the city's charter to be able to assess and collect the tax and for a waiver from the current state law. Councilman J. H. Graham supported the motion.
With the 9.75 percent sales tax along with the county and proposed city hotel/motel tax, the total tax on a hotel stay would be 20.25 percent. Most areas in Tennessee have a total of 19.75 and the highest in the state from 2015 is 21.75.
Discussion lead to some changes in the motion but it was stressed that the city's action would not affect the county's current hotel/motel tax that would remain in place. Council member Pam Harris asked if anyone had discussed the matter with local hotel owners to see how they thought it might affect their business? Harris also wondered if such additional tax might hurt tourism.
Wyatt said he thought the funds should be under the control of the city manager to decide what to use the funds for such as Parks and Recreation, tourism or golfing.
Mayor James Mayberry said he couldn't vote for it unless the funds went through the budget process and the council decided the use of the money. With that added to the motion, all four council members present voted in favor of the motion.
Because of the deadline to get the information to Nashville and the schedule of council members another called meeting was set for Thursday, January 25 at noon.
Council also approved authorizing the application for a 10,000 grant toward playground equipment at Garrison park and other items on the consent agenda.
No comments:
Post a Comment