Sunday, April 20, 2014

Fayetteville bumps hotel/motel tax from 5-percent to 8-percent


By Josh Akeman

The Fayetteville city council voted unanimously Thursday night to bump the city hotel / motel tax rate from five-percent to eight-percent, mostly to raise additional fund for promoting tourism and developing projects that might make Fayetteville more attractive for tourists.
The state made an allowance for the eight-percent rate in 2008, according to a memo from Director of Community Development Brian Wismer explaining the change, and many communities have taken advantage of the allowance including Peachtree City, McDonough, Stockbridge, and Clayton County.
Rules regarding hotel/motel tax rates require that half of the funds derived from the 3-percent increase must go to promoting tourism, while the rest can be put toward projects. Such projects include "parks and trails at the Ridge (including the proposed kayak/canoe water trail), expenses relating to the Welcome Center, the HDF Museum, and Amphitheater, to name a few," according to Wismer's memo. The project list will be updated annually as part of the Hotel Tax Report filed with the Dept. of Community Affairs.
Having adopted the resolution to raise the rate it must be sent to the current state legislative session to be approved as a Local Act. Upon that approval the city will have to amend its ordinance and the rate would go into effect the first day of the second month following adoption by the council.


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