Proposed Lodging Tax Increase Clears First Hurdle

In the coming year, it could cost a little more to stay in a hotel or rent a cabin in Fannin County. That has at least one area entrepreneur worried he’ll lose business and another asking that the money be dedicated to the arts. The first public hearing on a proposed excise tax increase took place Tuesday night during the regular Fannin County Board of Commissioners meeting with only two residents offering feedback to the board. Commissioners will vote on the ordinance at their next meeting, which is scheduled for July 26. A second public hearing will take place before the vote. If they approve the measure, the county’s current lodging tax will go from 3 percent to 5 percent. Lodging Tax Representative Debbie Jackson says, conservatively, the increase could generate about $200,000 a year. The money would be earmarked to promote tourism, but Jackson acknowledges state law allows for at least 3 percent of the tax to go into the general fund and be used for projects that indirectly benefit tourism.

The county has been collecting a 3 percent excise tax on lodging since 1993. Jackson says the current ordinance is in dire need of tweaking, since it hasn’t been touched in 18 years. For example, Jackson says tourists who book their reservations online aren’t required to pay the tax and she adds other loopholes need to be shored up. In essence, the county is losing money, since tourists pay the excise tax, not county residents.

That said, county residents who own cabin rental property and hotels could see some sort of backlash. One area businessman voiced concern that in a tough economy, raising any type of tax could cause tourists to vacation elsewhere. That concern, though, didn’t deter the City of Blue Ridge and neighboring counties from increasing their lodging tax. As of July 1, the lodging tax in the city went up to 5 percent. Neighboring counties, including Murray, Gilmer, Lumpkin and Union, also have a 5 percent lodging tax. Dawson County is currently at 8 percent, while Pickens, Cherokee and Whitfield counties have a 6 percent lodging tax. State law allows counties to charge up to 8 percent.

If Fannin commissioners approve the measure, the county’s current lodging tax will go from 3 percent to 5 percent, starting January 1, 2012. Commissioners did not indicate how they intend to vote on the proposal. The matter will come up for a second public hearing at the next Fannin County Commission meeting, which is scheduled for July 26th at 6:00 pm in the Jury Assembly Room on the third floor of the courthouse. A vote on the ordinance will take place directly after the public hearing, during the board’s regular meeting that same night.

The courthouse is located at 400 West Main Street in downtown Blue Ridge. An email address for Commission Chair Bill Simonds is posted on the county’s website as follows: Bsim@fannincountyga.org