Wednesday, January 16, 2002
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Wednesday, January 16, 2002 |
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PTC Council may hike hotel-motel tax to curb revenue shortfall By JOHN
MUNFORD
The downturn in Peachtree City's hospitality industry could lead to another increase in the city's hotel-motel tax. Just last year, the City Council voted to increase the tax from 3 to 5 percent, in part to fund the construction of the final expansion of the city's tennis center. But hotel-motel tax collections for the first few months of the city's fiscal year are still down 27 percent despite December's collections being just 6 percent below projections. The City Council is scheduled to consider an increase in the hotel-motel tax at its meeting Thursday night. Depending on whether the hospitality industry rebounds in the near future, the city's hotel-motel tax shortfall could range from $98,000 to $209,000. Several months ago, council approved a plan to embargo funds earmarked for equipment and projects for the current budget year in case the slowed economy severely cuts into the city's revenue stream. Funds from the hotel-motel tax revenues are also given to the Development Authority, which operates the tennis center and the city amphitheater and the Airport Authority, which oversees Falcon Field. Finance Director Paul Salvatore, in a memo to council, recommended that the Development Authority and Airport Authority be asked to absorb a pro rata share of the shortfall based on the proportion of the tax they receive.
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