F’ville hikes motel tax to 8%

If you want to stay in a Fayetteville motel, expect to pay more in taxes on your room.

Fayetteville is looking to join a number of neighboring cities by increasing the hotel/motel tax to 8 percent. The additional funds generated over the current 5 percent rate will be used for promotional efforts and tourism development.

The first reading of the proposed ordinance came at the June 5 City Council meeting.

The hotel/motel tax rate has been maintained at 5 percent since 2001, said community development director Brian Wismer.

“In 2008, the state created an allowance for an 8 percent rate. Since that time, many of the surrounding communities have opted for the 8 percent rate to create funds for tourism development and promotion. Peachtree City, McDonough, Stockbridge and Clayton County are a few examples of those that have already implemented the 8 percent rate,” Wismer said.

Wismer said the tax would be applicable to the first 30 days of a hotel stay. He said implementing the 8 percent rate will allow the city to increase promotional efforts which attract travelers and tourists to stay in local hotels.

“It will also allow the city to create tourism development projects that will improve (Fayetteville’s) destination appeal to visitors,” Wismer said.

The difference in the percentage of tax over the current amount must be split, with a minimum of one-half going toward promotional efforts and the remainder being eligible for tourism product development, Wismer said.

Wismer said examples of eligible tourism projects include the new Ridge nature center on Burch Road operated by Southern Conservation Trust, the Holliday-Dorsey-Fife Museum and the amphitheater.

The ordinance requires that projects be identified and updated annually and be included in the annual budget process, Wismer said.

The second reading and a likely vote will come at the June 19 meeting.

spartancaver
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And It's Off

And it off, the lid on other taxes that is. To lure businesses to an area politicians can't improve infrastructure, schools, and government services to lure businesses, they exempt businesses from paying taxes. But, there is little that prevents them from raising and implementing new taxes elsewhere as the incoming businesses will still need government services. Guess who pays for that increase demand? Local businesses passing the increased taxes on to the local customer.

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