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Council may support hike in hotel tax
By Rick Ruggles Increasing the city's hotel-motel room tax by $1 per room, to support a proposed convention center-arena, appears to have solid City Council support. The ordinance will appear on the council's agenda Tuesday. The vote won't be until Feb. 8 at the earliest. The local hotel and motel industry contends that the increase, from $2 a night to $3, would drive away business. Mayor Hal Daub and the local convention center board favor the increase as a source of revenue for the proposed convention center-arena. "I think we go ahead with the recommendation to increase it," Council President Paul Koneck said. Koneck and Councilmen Subby Anzaldo, Cliff Herd and Lormong Lo are sponsoring the ordinance. If all four remain supportive, the proposal would have all the votes it needs to pass. City leaders have proposed building a $281 million convention center-arena on the northeast edge of downtown. Omaha voters will decide May 9 whether to issue $198 million in bonds for the project. The room-tax increase would generate an estimated $1.2 million a year for the project. "I think it would be a reliable revenue source, which lends credibility to the bond issue," Herd said. Councilman James Monahan said he has not committed to the proposal because of the lodging industry's concerns. "I guess I'm just going to have to listen to all sides," Monahan said. The $1 increase actually would add $1.12 to the total taxes paid by guests at Omaha hotels and motels. That's because sales and lodging taxes would be paid on the additional $1 of room tax. The lodging industry generally is not pleased. Mark Jeffrey, general manager of the Omaha Marriott Hotel, said room taxes hurt hotels in any market. But they are particularly damaging in Omaha, he said, because Council Bluffs does not have such a tax. "It's just a competitive disadvantage," Jeffrey said. |