Hotel taxes may soon be designated only for tourism
Hotel taxes may soon be designated only for tourism
Proposed law would redirect funds
By Kim Swindell Wood Editor kim@myspartanews.com
Tourism promotion in Sparta may get a financial boost if Tennessee legislators approve a proposed bill that would require all proceeds collected from the hotel occupancy taxes to be used to directly increase tourism in the jurisdiction where the taxes are collected.
White County is one of 72 counties in Tennessee that have passed private acts to implement the hotel/motel tax. This tax is authorized on the “privilege of occupancy” of hotel and motel rooms.
White County is one of 72 counties in Tennessee that have passed private acts to implement the hotel/motel tax. This tax is authorized on the “privilege of occupancy” of hotel and motel rooms.
According to County Technical Assistance Service, rates are imposed from 2 percent to 7 percent of the price of the lodgings. The distribution of the tax is listed in the private act. White County has implemented a 5 percent hotel/motel tax.
Mark Farley, White County finance director, said locally the hotel/motel tax was passed in the 2002-2003 fiscal year. Farley said to-date the hotel/motel has brought in approximately $113,000. He said half the tax has been designated to go toward tourism, with the other half earmarked for the county’s debt service to pay off the construction costs of the library.
The majority of the 72 counties have earmarked their hotel/motel tax for general fund. Thirteen out of the 72 have earmarked the tax either partially or totally for tourism. The remaining counties have designated the hotel/motel tax for items such as industrial development, parks, fire service and recreation.
These are the 23 out of 95 counties that do not have the hotel/motel tax, according to CTAS: Bedford, Bledsoe, Cannon, Carroll, Coffee, Dyer, Grainger, Grundy, Hancock, Jackson, Loudon, McNairy, Morgan, Overton, Perry, Sevier, Smith, Stewart, Sullivan, Trousdale, Washington and Wayne.
Mark Farley, White County finance director, said locally the hotel/motel tax was passed in the 2002-2003 fiscal year. Farley said to-date the hotel/motel has brought in approximately $113,000. He said half the tax has been designated to go toward tourism, with the other half earmarked for the county’s debt service to pay off the construction costs of the library.
The majority of the 72 counties have earmarked their hotel/motel tax for general fund. Thirteen out of the 72 have earmarked the tax either partially or totally for tourism. The remaining counties have designated the hotel/motel tax for items such as industrial development, parks, fire service and recreation.
These are the 23 out of 95 counties that do not have the hotel/motel tax, according to CTAS: Bedford, Bledsoe, Cannon, Carroll, Coffee, Dyer, Grainger, Grundy, Hancock, Jackson, Loudon, McNairy, Morgan, Overton, Perry, Sevier, Smith, Stewart, Sullivan, Trousdale, Washington and Wayne.
Courtesy of the TnHA newsletter