Home > Local > CROSSVILLE CITY COUNCIL APPROVES 3% HOTEL/MOTEL TAX HIKE; GENERAL ASSEMBLY MUST APPROVE

CROSSVILLE CITY COUNCIL APPROVES 3% HOTEL/MOTEL TAX HIKE; GENERAL ASSEMBLY MUST APPROVE

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The Crossville City Council has voted, in private act, to raise the hotel/motel tax by three percent with the funds going to tourism and economic growth. The resolution, which will have to be presented to the General Assembly for approval, was proposed by Council Member Danny Wyatt, who also said that the increase would raise the tax base. The motion did not go without protest. Several managers of local motels were at the special-called meeting Thursday, and said that the increase would put the tax at just over 20 percent, making it one of the highest motel/hotel tax rates in the state. They proposed that the increase would scare off potential guests, particularly corporate guests, especially if the increase was at one time instead of being incremental. The council said that if the state passed the resolution, it would be up to the council to decide how to dole it out. Council Member JH Graham said that he believed the increase would not hurt, but would add to the city’s coffers, and that the city manager would recommend where the expenditures would go, whether it be to Parks and Recreation or to the Chamber of Commerce, with the final approval coming from the council. The motion passed unanimously. Council Member Scot Shanks was absent from the meeting.


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