Thursday, February 07, 2008

No hotels? No prob, they passed hotel tax anyway

Link HT: Don Fenley

BLUFF CITY, Tenn. – City officials’ plans to impose a hotel tax have upset the owner of a business they annexed six weeks ago, and the plan could take on an unusual twist before any revenue is collected.

The city’s Board of Mayor and Alderman will vote whether to get the ball rolling on the process during tonight’s meeting at 7 in city hall.

Forty-five Tennessee municipalities currently charge a hotel tax, including Bristol, Kingsport, Johnson City, according the University of Tennessee’s Municipal Technical Advisory Service. The most common rate charged is 5 percent, though some charge as much as 7 percent.

While Bluff City does not have any hotels, City Recorder Judy Dulaney said the proposed tax would apply to visitors at the Lakeview RV Park, which the board voted to annex on Dec. 20.

"I wouldn’t like that at all," Lakeview owner Worley Fain said Wednesday when he heard about the city’s plans to move forward with a tax.

Fain set up his business in March 2006 on land his family owned along U.S. Highway 11E, 3.5 miles south of the Bristol Motor Speedway.