reprinted from:
Clinton passes controversial 3 percent hotel tax
By Bob Fowler, Anderson County
editor CLINTON - Despite pleas urging them to reconsider or postpone action, Clinton City Council members have passed a 3 percent hotel/motel tax. Combined with a 9.75 percent sales tax and the county's 5 percent room tax, overnight visitors to Clinton's four hotels will find themselves paying nearly 18 percent in taxes. Collection of the new tax is expected to start within two weeks, said City Manager Steve Jones. Clinton's move to impose its own room tax, in the talking stages for three months, has sparked a renewed effort to merge tourism promotion efforts funded by hotel/motel taxes now in effect in Oak Ridge and Anderson County. It also has Clinton hoteliers wringing their hands and expressing concern the tax hike will hit their already dwindling business and ultimately curtail the local sales tax stream. With passage of the tax, "We can guarantee you no motel will be developed in the area," said Shalesh Patel, owner of the Comfort Inn in Clinton. "Please do not pass any tax rate." Patel presented estimates that the tax would generate $50,000 to $75,000 a year for Clinton but would result in a net loss of $1.1 million to $2.1 million annually in other taxes, including levies on gas and sales. Council's action Nov. 18 also prompted discussion three hours later during the Anderson County Commission meeting. Commissioners voted to go on record as wanting to maintain the county's 5 percent tax on hotels but to let Clinton know the county is open to talks about merging tourism promotion efforts. County Executive Rex Lynch recommended that the county maintain its current room tax. In informal discussions earlier, Clinton officials had asked if the county would be willing to scale back its hotel/motel tax as part of a compromise. Lynch said "every penny" received from the current county room tax is funneled into tourism promotion efforts. Slashing the county's room tax would force the county to scale back those efforts by the Anderson County Tourism Council, he said. "Everybody talks about working together, and we're sitting here putting up a fence," said Commissioner Mark Alderson. In recommending passage on second reading of an amended 3 percent hotel/motel tax, Clinton Mayor Wimp Shoopman said the levy could be increased to 5 percent "when the next budget cycle rolls around." "We want to be included in tourism," Shoopman said. Councilman Robert Hill said a locally produced brochure touting Anderson County tourist attractions includes only "one sentence" about Clinton. Councilman Jerry Shattuck suggested approving the 3 percent room tax but not imposing it until after July 1, when the next fiscal year goes into effect. He urged Patel to make the same presentation to County Commission about possible effects of the new tax on hoteliers and the total tax stream. Councilman Scott Vowell said an earlier, informal meeting with county officials on the room tax issue left him with the impression that the county would prefer that Clinton increase its property tax rate rather than impose a hotel/motel tax. "Those outside entities are jealous that we
have an 89-cent tax rate." Vowell said. |
