'Destination' programs may be boosted by new tax--UPDATE

UPDATE:

This new tax could help develop a stronger Main Street program to promote and develop the city center.

Councilman Rhodes answered a few questions about this tax proposal:

1. How much money was raised in the most recent budget year from this tax?

I can get the numbers for you, but it will have no bearing on the proposed increase. Any additional hotel motel tax (1% to 5%) will be used as defined by state law. At this point, we are not sure how much it may be due to not knowing what will be proposed by the state legislature. They may only approve 1% or they could approve the entire 5%.  The total could be from a hotel motel tax for 4% to 8%. The surrounding area is 6% and 8%.

   2. Has the council formed around a consensus about what the new tax rate would be and how much additional income it would bring in?

We have a list of about 20 items we believe would fall within the guidelines set up by the state. However, we are reviewing the list now to be sure we are providing the correct information. I will get it out as soon as we get it. Council will then vote around those things we believe will be proper per state law.

  3. What organizations may benefit from this?  It would appear the Downtown East Point group could benefit? Any other group?

The tax is designed for promotion and tourism. I am not sure any specific group would benefit but I am hoping that we will be able to use some of it for the Main Street Board to fund their activities. Most successful cities have a strong Main Street Board but East Point has not been able to fund them to the extent that they could be of the greatest use. When we get the list reviewed of possible uses, I will have a better idea on how to answer this question.

The East Point City Council wants to increase the city's revenue by raising taxes on hotel guests.

Ward B Council Lance Rhodes said the council took the first step to increase the existing 3 percent hotel/motel tax when it recently voted to notify the city's state representative of the council's intent. 

"It is well past time for East Point to move in this direction," said Rhodes in an email. 

The tax is paid by patrons of East Point hotels. According to the city's Economic Development Department, hotels are big employers here. They include: 

• Crowne Plaza Atlanta-Airport Hotel
• Doubletree Hotel
• Holiday Inn Airport Hotel 

City coffers received $1,186,897 in the 2008 fiscal year and $800,000 the next year from the hotel/motel tax, according to the city's budget.          

A state law restricts uses for the hotel tax to promoting tourism, conventions and trade shows.