ATLANTA — Legislation crucial to the proposed hotel at the Northwest Georgia Trade and Convention Center in Dalton rests where it failed last year — on the desk of Gov. Sonny Perdue.
Last year Gov. Perdue vetoed the tourism tax incentives bill, which included a measure to let developers recoup up to 25 percent of project costs over a 10-year period, because an unrelated tax incentive for the film industry was attached to it.
The Trade Center deal with Missouri-based hotel developer John Q. Hammons hinges on the tax incentive, and it has been on hold since the legislation was vetoed after the end of last year’s legislative session.
Lawmakers worked closely with Gov. Perdue before this year’s session started to word the bill in a way he would approve, and the measure again passed the General Assembly.
But the economic climate has gotten stormier since last year, and now a spokesman for Gov. Perdue said his boss has some concerns about the tourism tax incentive.
Spokesman Bert Brantley said this week that Gov. Perdue needs to thoroughly examine the bill again before signing off on it. He said last year the proposal didn’t receive a “full evaluation and review” as it will this year.
“There are concerns about what we’re trying to accomplish for the future,” Mr. Brantley said. “The danger is that it becomes a baseline. He’s worried we’re raising the ante on ourselves.”
The bill’s sponsor, Rep. Jeff Lewis, R-White, said House members tried to address those concerns by stipulating that any project approved by the state for the tax incentives is not eligible for any other tax break.
“It’s an either-or proposition,” Rep. Lewis said.
Another change from last year’s legislation allows existing tourist attractions to apply to receive tax breaks to make up for up to 10 percent of costs for any new projects they undertake, he said.
“There’s still a great deal of interest,” Rep. Lewis said. If signed, “You’ll soon see announcements of different attractions.”
Hotel developer J.Q. Hammons has held off on the $40 million hotel deal, but has not given up on it, a spokesman said.
But the developer will re-evaluate the project, said J.C. Ebach, senior site locator for J.Q. Hammons, after the trade center’s executive director, Rick Tanner, resigned last month.
Meanwhile, Mr. Brantley said Gov. Perdue is “a major supporter of tourism” and the close advance work with lawmakers may have produced acceptable legislation.
“The good news is a lot of concerns were raised and some work done” to address them, he said.
Gov. Perdue will probably take until the May 14 deadline to decide the fate of the hundreds of pieces of legislation passed by the General Assembly this year, Mr. Brantley said.
As for his prediction on the tourism tax incentive, Rep. Lewis said, “I expect him to look at it very closely, and in the end, expect him to sign it into law.”
