F’ville may hike hotel-motel tax

F’ville may hike hotel-motel tax

Fayetteville is looking at mimicking other Georgia cities by increasing the tax on hotel and motel rooms up to 8 percent compared to the current 5 percent rate. The measure will have to receive approval from the Ga. General Assembly before the increase can be considered.

Director of Community Development Brian Wismer at the Jan. 16 meeting said the current rate of 5 percent on rooms was set in 2001. The legislature in 2008 paved the way for rates to increase to 8 percent, said Wismer.

“Most of our neighbors have gone to 8 percent,” Wismer said, citing the increase on the room tax by Peachtree City, Stockbridge and McDonough.

Wismer noted that the tax would be applicable to the first 30 days of a hotel stay and that at least half of the additional tax amount would have to be spent on promotional or advertising efforts by the city to generate additional revenue for the local economy, including hotels.

Mayor Greg Clifton said the council can act on the local amendment if the request is approved by the General Assembly. The earliest time frame for considering the increase would be during the summer, Clifton added.

Clifton said he spoke with both hotels in the city and found one having “no problem” with an increase while the other “did not like it.”

Prior to the unanimous vote, Councilman Paul Oddo said he was not sure he agrees with the increase but he did agree with giving the city the availability to increase the tax.

Assuming the request is adopted by the General Assembly, the city will conduct two public hearings on the issue prior to making a decision on the matter.

Once increased, the council has the ability to lower the tax rate in the future.

wxman's picture
Joined: 02/15/2010
A non-issue..

When the surrounding cities raised to 8% did Fayetteville see new hotel rooms built and/or have an increase in occupancy? I doubt it. This is a non-issue. Have decent places to stay, and be located where rooms are needed. If there hasn't been new interest in new rooms in Fayetteville, there isn't a need and no one should be driving 8-10 miles out of their way to save $2-3 a night in tax. I guess that saving a dollar or two would be "conservative" in thinking but would still be backward and misdirected.

phil sukalewski
phil sukalewski's picture
Joined: 03/17/2010
Be competitive with low hotel tax

Sometimes i can't believe that Fayetteville is still a Conservative place. Are we really going to repeat the classic mistake of raising the tax on a local business to drive its customers away & then get the higher % on a business that's gone ?

Leave the hotel tax low to encourage guests to stay here and new hotels to be built here. I'm sure the new restaurants would like to see more potential customers. Until recently, there was little attraction to staying in Fayetteville over PTC.

Better to have more hotels and hotel guests paying the 5% tax than less and less guests at the current 2 hotels paying 8%.

Husband and Fat...
Husband and Father of 2's picture
Joined: 07/23/2012

Let's be real. When's the last time you compared local taxes when you stayed in a hotel? Will $1 make you drive 10 miles into another city?

Husband and Fat...
Husband and Father of 2's picture
Joined: 07/23/2012
Hotel tax- Fayetteville

We are talking two hotels here. One is ok with the tax and the other does not like it.

Does the one who doesn't like it, believe the tax will place him in a competitive disadvantage? This is important to understand.

Not sure I understand Mr. Oddo's fence sitting, but what do I care, I'm in PTC.

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