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PTC Council eyes bigger slice of hotel-motel tax

Today, if you check into a motel, hotel or conference center in Peachtree City, on top of your room bill you will pay a 6 percent lodging tax.

The Peachtree City Council Thursday night will consider raising that to as much as 8 percent, plus taking a bigger cut of the tax.

The prospect of the council taking a bigger slice of the hotel/motel tax is being eyed uneasily by the city’s Convention and Visitors Bureau, midway through its fiscal year, which would see less money going directly to it.

“We’re not trying to take money away from the CVB,” Mayor Don Haddix said at a workshop meeting Tuesday night. “This would just give the council more flexibility for the future.”

Under the present arrangement, the 6 percent tax gets split three ways. The city’s general fund gets a third — or 2 percent — of the tax while the CVB gets two-thirds — or 4 percent. Of that 4 percent, the city’s Airport Authority then gets a sliver of that, about eight-tenths of 1 percent.

The council — operating under a new state law that allows more flexibility in setting and distributing the tax — wants to increase its share to half, necessitating less direct money for the CVB and the Airport Authority. The council indicated it would pass through an equivalent amount to the tourism board to make up for CVB's lost tax income.

Discussions Tuesday night mostly stayed away from notions of increasing the tax from its current 6 percent rate. Instead, the bulk of the talk was about the size of the tax pie slices.

Based on staff estimates, the change in percentages would add about $130,000 to council coffers, while taking away the same amount from the CVB and Airport Authority.

The topic has been added to the Thursday night agenda for a council vote.

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Comments

Robert W. Morgan's picture

Take away the money from the 2 entities that might create business for PTC and put it in the big stinking pot that council controls and spends on what? Bad idea.

Maybe the $65k could go the DAPC which would be $65k more than they have now.

Live free or die!

...out of town, we also pay large tax add-ons to our hotel bill, just as do our visitors here.

Now they want to raise it to 8% of the take. At least it is called a "Tax" this time!

Would it not be better if the city simply owned the hotels and motels, etc., and get all of the profit? It would probably be more than 8%!

Or is that socialism?
Florida makes a living out of such taxes.

Of course we would have to hire professionals to manage our hotels, since we don't even want to run a youth center.

When can we do the 30% "Fair tax?" I want my $450 welfare check from the government every month. I won't buy a car or a house and not many groceries---can't at 30% tax on it. Georgia is also planning a "fair tax" I saw today.
I suppose Fayette County and PTC could also have one? We have to have jobs somewhere---might as well be people on tax salaries.

PTC Observer's picture

returns

Mike King's picture

A mayor and council who simply do not possess the fortitude nor the will to curb city spending to that of matching revenues. Surely, this was not part of the vision of the city's original planners.

Is it any wonder the city stopped growing?

Higher taxes...

Higher costs per unit...

Assisted by Expedia, Travelocity....
...Hotels.com ... etc... etc...

The click of the mouse will direct the clientele elsewhere--

LESSON:
Higher taxes/costs will result in stagnant or reduced revenue...

NOTE TO COUNCIL:
Please don't act like liberal lemmings....

I sat shaking my head for minutes just thinking about this mayor. Does anyone use common sense anymore?

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