April 26, 2024
By: Dwayne Page
Should the county’s hotel/motel tax be increased for marketing DeKalb County to promote local tourism?
During Thursday night’s meeting, third district county commissioner Tony Luna asked the budget committee to consider recommending to the full county commission action to increase the current 5% hotel/motel tax to 8%. Since the 5% tax was established for DeKalb County through a Private Act by the Tennessee General Assembly in 1995, the county commission would have to ask the state legislature to amend the private act in order to increase the tax to 8%. It would be next year before the state could make the change since the general assembly has concluded business this year.
The county projected the local hotel/motel tax this year to generate at least $210,000 but Commissioner Luna said the county has already taken in more than $232,000 with still two more months remaining in the 2023-24 fiscal year. The money derived from the hotel/motel tax goes to the county general fund.
With DeKalb County tourism growing, Commissioner Luna said it only makes since to increase the hotel/motel tax to promote local tourism because it’s the tourists who pay the tax and more tourists means more sales tax revenue to help fund schools and other local needs.
“In 1995 we (county commission) passed a private act establishing a hotel/motel tax and its at 5%. It’s never been raised,” said Commissioner Luna. “The budget estimate for this year was $210,000 but so far we’re already at $232,000 which tells us that we are really growing in this county and even in the last five years it (collections) shows the growth we have gotten out of this from just the tourists coming in,” Luna explained.
“If we raise that tax to 8% it will generate between $75,000 to $125,000 depending on how many people come here. I would like to see that 3% go toward marketing of our area including Smithville, Center Hill Lake, and DeKalb County as a whole. That will bring more people in who will stay in these short-term rentals and if we ever get a hotel or motel we will generate more funds from that. These folks (tourists) are going to come in and spend money here which goes on our local option sales tax, part of which is for schools and other projects we are trying to fund. Its almost like free money,” Luna continued.
“The last time you rented a place and went on a vacation, did you check and see what your (hotel/motel) tax was? Nobody does. They pay that fee,” said Luna. “Another good thing is that nobody local is going to pay it. Only visitors coming in,” he said.
“I would like for you (budget committee) to look it over. I would like to see it be earmarked just for the marketing of this area because it will pay us back in dividends on the back end. Suzanne Williams (Chamber Director) applies for grants all the time and she has gotten $450,000 in grants so far this year but there are some grants she doesn’t apply for because they are matching grants and these are funds we could use toward that. We might turn $10,000 into $100,000. If you look at this area, Center Hill Lake is the number one search (by tourists) and the Jamboree is second, but the Jamboree is only for one weekend. We have 51 other weekends that we could do something and that’s why I would like to see this happen,” said Luna.
The budget committee has not yet acted on Commissioner Luna’s request.