Lodging tax eyed by Dade officials

TRENTON, Ga. -- A Dade County official wants to discuss adding a county lodging tax that would apply to cabin rentals on Lookout Mountain.

County Executive Ted Rumley has brought up the idea with commissioners, but he said it would be several commission meetings down the road before any decisions were made.

"We're just discussing it," he said Monday. "We're looking at anything that can bring additional revenue into the county."

Dade County, like other counties in Northwest Georgia, has trimmed its budget and taken cost-saving measures to combat slumping sales tax revenues. The tax would require an amount of money be paid by visitors to the county for each night they stayed within its borders. The tax is common in the state, and Trenton already has a 5 percent lodging tax. The county tax would probably not apply inside the city, according to Mr. Rumley.

"In the state of Georgia there aren't many counties that don't have a hotel-motel tax," Mr. Rumley said.

Mr. Rumley said the tax could be percentage based or some kind of flat rate, and the county attorney was looking into the options.

Officials said there are no conventional motels in the county outside of the city limits, but the tax would apply to cabins, resorts and retreat centers on Lookout Mountain.

Donnie Lingerfelt, who runs Scenicview Log Cabins in Rising Fawn, said he'd withhold judgment on the tax until more of the details are worked out.

"It probably all depends on how much they decide to do," he said. "I know the customers won't like it."

Mr. Lingerfelt, who rents his 12 cabins for $65 to $200 a night, said part of his business strategy is to be "the cheapest around," especially compared to hotels and cabins in Chattanooga. If the tax forces the cost of a night's stay to go up, "it's going to hurt us," he said.

Commissioner Peter Cervelli said he could support the tax, but the impact on the cabins is "the one thing we'd have to look at." He said he doesn't think it would affect business very much.

"I can't imagine it would discourage people from coming to Dade County," said Mr. Cervelli, who stayed overnight in Atlanta on Monday. "It would probably be much less (tax) than what I'm paying here."

Mr. Cervelli said the tax probably would be close to the 5 percent rate in Trenton. Mr. Rumley said it could be a small but helpful revenue stream.

Mr. Lingerfelt said if the county needs money it could cut spending on projects such as the new courthouse set to open in September.

"I know in my business I don't build unless I have the money," he said.