|
reprinted from:
Tourism panel OKs new tax
By Lolly Bowean, River
Parishes bureau Despite the objections of some board members and political officials, the River Parishes Tourist Commission approved an ordinance Thursday to levy a 1 percent occupancy tax, starting in January, on local hotels and motels. The additional tax means customers will have to pay a little more for their stay, although how much more depends on the type of accommodations and the room rate, officials said. The commission, made up of eight business-oriented people, was created in 2000 by the state Legislature to promote and increase tourism in St. Charles, St. James and St. John the Baptist parishes. The board is authorized by the state to levy an occupancy tax of up to 2 percent on motels and hotels within its jurisdiction. The board will use revenue raised from the tax to finance its activities, commission members said at a meeting Thursday morning. "No one wants to pay more taxes," said Judy Songy, who represents St. John and supported the tax. "But we need to go ahead and take this step. We now have an executive director, and she has an office. There are a lot of start-up costs." The board will impose an additional 1 percent occupancy tax on hotels and motels in St. John and St. Charles parishes starting in January 2004. There are no hotels or motels in St. James Parish. The commission agreed to impose the tax by a vote of 5-2. One member of the board was absent from the meeting. The extra tax means customers who check into local hotels and motels for a short stay will have to pay a little more for their rooms. For example, a person staying in a $75 room will pay an extra 75 cents in taxes, bringing the total bill after other taxes are included to $82.13. A person staying in a $100 room will pay an extra $1 in taxes, bringing that total bill, after other taxes are added in, to $109.50. Customers who stay in a hotel or motel for more than 30 days, and commercial customers who have contracts with local hotels will be exempt from the new tax. On Thursday, the board was criticized by hotel and motel representatives who said the board approved the tax measure prematurely. The board doesn't have specific plans for how they will spend the additional revenue. And although board Chairman Paul Aucoin estimates the tax will generate about $7,500 for the commission in its first year and $15,000 in 2004, that figure is not exact. Aucoin said he calculated the figure using information provided by the state and some local hotel and motel owners and that those figures may not be totally accurate. The commission already receives revenue from a 1 percent sales tax the state imposes on local hotels and motels, officials said. For fiscal year 2001-2002, that tax generated $69,021. Local owners estimate that 80 to 90 percent of their business comes from commercial customers, but they don't know how many of those commercial customers have contracts and would therefore be exempt from the tax. Because those figures were not available to the commission Thursday, it could not accurately determine how much money the new tax will raise. "This is premature," said Debra Dufresne Vial, who represents St. Charles Parish on the board. "I have never been in favor of imposing this tax, because we don't know what we will do with the money. I want to know what we are going to do to promote tourism. We don't even know how much money the tax will bring in. I don't think we acted responsibly, and that's why I voted against it." The occupancy tax also was opposed by some St. John leaders, who say it is unfair. The revenue raised from the occupancy tax will support the commission, which serves three parishes. But the majority of the money will come from St. John Parish, since it has the most hotels and motels. "We need to come up with a funding mechanism that all three parishes can share equally," St. John Councilman Duaine Duffy told the commission during the meeting. State Rep. Bobby Faucheux, D-LaPlace, sent a letter to the board asking it to delay the vote until he could find alternative ways to finance the board's activities. But the majority of the board supported the tax, saying it will give the commission another revenue source to finance its activities. "I think to do our job properly, the
commission needs adequate funding," Aucoin said. "Right now, today, the
source which is given to us under (our charter) is a hotel-motel occupancy
tax. I feel comfortable that the ordinance we adopted today will assist the
commission in carrying out its duty, which is to promote tourism in St.
Charles, St. John and St. James parishes." |
