PTC to study hotel-motel tax increase

Fri, 01/22/2010 - 2:33pm
By: John Munford

Peachtree City staff has been authorized to study a possible increase in the hotel-motel tax rate from 6 to 8 percent.
Along with the increase, the city might be able to spend additional tourism funds on general fund items such as parks and the path system, along with funding the city’s tourism efforts, City Manager Bernie McMullen told council Thursday night.

The next step is for the city to get input from local hotel and motel operators about not just the increase but also potential projects they feel might have an impact on getting people to visit the city or stay longer.

Based on the current 2009-2010 budget, the action would raise an additional $256,000 over the entire budget year, according to city estimates. Of that $256,000, the city’s would realize an increase in its general fund of $128,027, which is 50 percent above the $256,054 currently being collected under the 6 percent rate.

Currently a part of the hotel-motel tax is distributed to the tourism association and another part goes to the city’s Airport Authority for the operation of Falcon Field. Those figures would decrease slightly under the proposed increase to 8 percent.

The increase, if adopted by council, would still need approval of the Georgia legislature and the governor’s signature before it could be increased.

The legislature and governor typically rubber-stamp local legislation that is approved by the local delegation, but with state tax revenues down, uncomfortable belt-tightening statewide, and unemployment remaining high, any proposed tax increase is likely to withstand increased scrutiny this year.

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Submitted by Citizen_Steve on Mon, 01/25/2010 - 11:23pm.

That headline would make more sense to me. I know there's a lot of sentiment for the airport but I've never heard a convincing justification for us to support this money-pit.

Here's a headline I'd really like to see:

PTC to Subsidize Hotel Rates from Airport Income

In an effort to attract more tourists, Peachtree City plans to subsidize local hotel rates using profits from its operation of Falcon Field. Council had initially planned further taxes on hotel rates in order to attract guests, but once presented with the results of a 6-month study conducted by a paid consultant, council decided that out-of-town guests prefer lower, rather than higher rates.

Submitted by Spyglass on Tue, 01/26/2010 - 10:13am.

I've read it all now.

Submitted by PTCGOIL on Mon, 01/25/2010 - 12:06pm.

Increase is a great way to generate much needed revenue for PTC. Most states have tax rates from 8-14% on hotel stays.

Helps keep the burden off homeowners. We are all going to have to absorb a property tax increase from the State of Ga. and who knows what Fayette County will come up with. I wouldn't be too concerned with NCR and others. The tax breaks the state has already given them will tide them over just fine.

The Prince's picture
Submitted by The Prince on Mon, 01/25/2010 - 1:05pm.

PTCGOIL aka Mayor Haddix,

I hope that you will reconsider your position. If the council increases the hotel-motel tax, they will be severally burdening several companies in our community. Raising taxes is hardly the best way to increase revenue. Why don't you think of new ways to increase economic activity in the city instead of increasing the tax rate.

Our new mayor and council are deeply concerning me. We must continue to hold their feet to the fire.

"It is better to be feared than loved, if you cannot be both."

-Machiavelli, The Prince

Submitted by PTCGOIL on Mon, 01/25/2010 - 1:41pm.

Haha, not even close on Haddix. I think you are confused here.

The vote was 4-0 for staff to STUDY the increase. (Imker not present). To get feedback. That's all so far. There was not one objection.
If you object to this, have you notified council with your thoughts? Have you gone to Dev. Authority mtgs. to see what they are working on to stimulate our economy? I think not. You seem to feel there are numerous ways to stimulate the economy in PTC. Share some with us, please, or at least with the Dev. Authority. I have shared mine already and if I can come up with more, I'll let them know.

What is your "severally burdening several companies in our community"?
Please explain.

What decisions by this new council bother you?

The Prince's picture
Submitted by The Prince on Mon, 01/25/2010 - 2:08pm.

Mr. Mayor,
You assume a lot. How do you know that I have not gone to the Dev. Authority Meetings? Because I HAVE. I have also expressed my ideas directly to you (@ the time a candidate for mayor). Your answer to me was "it will not work". You continued by explaining to me that the best way for us to raise revenue is for the voters to pass the SPLOST and also face a "small" mill. increase. Thank God for Doug's motion concerning the salary increases or I feel they would have passed last meeting.

You asked why the new council concerns me?

So far we have been lucky with the new council. Imker is a good guy but we need him there to put pressure on the rest of the council. In just two meetings, we now have a new tax to take your dog to the dog park (that's real enforceable?!). I can't wait to see what else is coming down the pipe.

"It is better to be feared than loved, if you cannot be both."

-Machiavelli, The Prince

Submitted by PTCGOIL on Mon, 01/25/2010 - 2:52pm.

I repeat, you are not talking to Haddix. But, I can provide you with his e-mail if you don't have it.

SPLOST was voted down. Before this council was voted in. So what is your point here?

"Lucky" with the new council? If I were doing the hard work they have shown to be doing so far, I would be insulted by your comment. Did you not hear the 4-0 voted to table the raises? It was unanimous. How much clearer can that decision be? Again, what specifically has this new coucil done to upset you?

Mr.Imker? Unless he had a family emergency or illness that precluded his being at his SECOND of two meetings, I feel he owes ALL of us an apology for not showing up.

The dog park is going to have limited free use time built in for those who can't afford the $1. per use or $35. per year per household fee. And since this issue was raised by one citizen at the very first meeting of this new council less than three weeks ago, I applaud them for addressing it so quickly.

The Prince's picture
Submitted by The Prince on Tue, 01/26/2010 - 12:39pm.

After reading this piece, I now have major doubts that you are Haddix. I apologize.

Maybe Mr. Brown? HAHA

"It is better to be feared than loved, if you cannot be both."

-Machiavelli, The Prince

Submitted by PTCGOIL on Tue, 01/26/2010 - 1:13pm.

Nope, not Mr. Brown. No apology necessary. Just a little 'ol PTCGOIL. Although, I will say I did vote for Mr. Haddix.

And, as with all choices, there will be disagreements coming up. I will be vocal about those, too. But, thankfully, so far, (it's still early, I know) I believe he has done good by us. I wish him well, along with the rest of our Council.

Submitted by Spyglass on Tue, 01/26/2010 - 10:14am.

For various and very easy to spot reasons, I seriously doubt it's Don...unless he's using a ghost writer.

Submitted by PTCGOIL on Tue, 01/26/2010 - 11:33am.

We can disagree here, but I'll take that compliment anytime. To see a vast improvement, see his column in the PTC Update this week. Betsy will get him on the right track.

Submitted by Spyglass on Sat, 01/23/2010 - 11:27am.

this new Council is a joke.

Submitted by nusport on Sat, 01/23/2010 - 11:07am.

That didn't take long. I bet NCR is not very happy about this. Every large employer in the city will be hurt by the increase unless the state saves us.
Property taxes are next.

Submitted by PTCGOIL on Mon, 01/25/2010 - 12:14pm.

from what? Higher taxes? The state of Ga. has the 8th worst budget deficit in the country.

Someone is living in la la land if they think any help is coming FROM the state to PTC.

Sorry, the worst is yet to come on this one.

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