PTC tweaks, hikes hotel-motel tax

On a 4-1 vote Thursday night the Peachtree City Council adopted a new structure for the city’s hotel-motel tax rate that will steer an extra $130,000 to the city’s general fund.

Councilman Eric Imker said that will allow the city to shave $130,000 off the general fund budget and translate that into a decrease in property taxes,

at the very least by shrinking a projected need for a tax increase.

A subsequent 3-2 council vote to raise the tax rate from 6 to 7 percent will prevent a shortfall in funds to the city’s Convention and Visitor’s Bureau that was projected to have occurred had the rate remained at the 6 percent level with the new change.

Councilwoman Vanessa Fleisch voted against the new hotel-motel tax structure, saying it would handcuff local hoteliers as they compete for corporate events and the like.

The restructuring and increase in the hotel-motel tax is contingent upon legislation being approved by the Georgia General Assembly.

Imker noted that a hotel-motel tax rate is not a factor in people’s decisions on where to stay.

“We’re looking to try and save $390,000 to avoid a tax increase,” Imker said. “This will be $130,000 of that.”

Imker acknowledged that he was shifting a part of the city’s tax burden to visitors.

Mayor Don Haddix said he supported the hotel-motel tax restructuring because of the added flexibility it gives the city’s Convention and Visitor’s Bureau to spend money on projects such as golf cart paths or an amphitheater or sports center.

Haddix, however, joined councilman Doug Sturbaum in voting against the increase of the tax from 6 to 7 percent.*

* Note: An earlier version of this story contained an incorrect accounting of the vote on the tax increase. The sentence in bold represents the correct information.

Don Haddix
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Haddix: John, Error

Councilwoman Fleisch voted for the tax increase.
She changed from a no tax increase to a tax increase. Councilman Sturbaum and I voted against it. We were always against the tax increase.

The flexibility is good for both the City and the CVB. The tax increase was not good for the hotels and motels.

Spyglass
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What hotel tax does our competition charge?

Just be fairly competitive, so others don't use it against us.

My Wife and I travel a good bit, and I can never recall checking the hotel tax before I booked a room.

Mike King
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Spyglass

Agree that competitiveness comes into play. With this mayor cuts in spending have always been a last resort.

Mike King
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3-2 Votes

My bad, the mayor still has his shadow.

"Councilman Sturbaum and I voted against it. We were always against the tax increase."

Don Haddix
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Haddix: Nope

We do not always vote the same. Thursday we disagreed on two or three votes, in example.

Mike King
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What's Next? Toll Booths On Cartpaths?

“We’re looking to try and save $390,000 to avoid a tax increase,” Imker said.

My goodness, have these idiots ever considered cutting spending?

Looks like Mr Sturbaum has abandoned his stance of shadowing the mayor, reelection time no doubt.

normal
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Cut spending Mr King, Never

I agree, cut cut cut. But government employees are dumb. They dont make money they steal money. Therefore they dont have to cut spending. The best person in the world turns into an idiot when they start working in government. That is why American is bankrupt and China owns us.

moelarrycurly
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Memo to Councilwoman Fleisch

You were so off base on your comments on the hoteliers, it was silly. Imker was right on the mark. (Note to John Munford: Imker did not say there would be a small tax decrease, he made a point of saying there is no guarantee, but he hopes this will work toward one..don't we all?)

I wish someone would put your golf cart charts on YouTube, for the giggles. So entertaining and hilarious.

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