Dalton approves hotel/motel tax increase

DALTON, Ga. -- The City Council passed a resolution Monday night to raise the hotel/motel tax to 7 percent.

The additional 1 percent lodging tax would raise roughly $100,000 more each year for the Dalton Convention and Visitors Bureau, Mayor David Pennington said.

The current budget is about $380,000, according to new CVB Executive Director Brett Huske.

John Davis, chairman of the CVB board, said the extra money would be used solely for marketing.

"Although we understand times are tough ... we believe (it) is important to increase our spending and increase awareness of what we have in the community," he said.

Mr. Pennington said the hotel/motel tax, which is in addition to the area's 7 percent sales tax, still will be competitive with other areas.

Revenues from the hotel/motel tax are used mostly to help fund the CVB's and Northwest Georgia Trade & Convention Center's annual budgets.

City Finance Director Cindy Jackson said the city pays about $173,000 each year to the CVB and about $420,000 to the trade center.

County Finance Director Ron Hale said the county pays the same to both organizations. But, the county's hotel/motel tax only generates about $200,000 annually and the rest comes from the general fund.

The CVB also will ask the county to raise it's hotel/motel tax to 7 percent. Commissioner Mike Babb said that commissioners will consider that at a future meeting.

Mr. Hale said the tax increase for the county would only bring in about $30,000 more each year.

Harvey Neal, general manager at LaQuinta Inn & Suites said there's "cautious support from the hospitality industry" for the increased tax because of the weak economy, but "overall I think it will be positive" to increase marketing efforts.

Before the tax can go up, it must be approved by the state Legislature, said City Attorney Jim Bisson.