Chamber says lodging tax needed
Published 6:00 am Thursday, November 2, 2000
With a vote by the board of directors, Brookhaven-Lincoln CountyChamber of Commerce officials have taken the first step towardseeking a 2 percent motel and hotel tax to fund improved marketing,retiree promotion, tourism and other economic developmentefforts.
Chamber officials plan to seek the support of the mayor andboard of aldermen either at their meeting Tuesday or on Nov. 21. Alocal and private bill to allow the tax, which would not includerestaurants, must be approved by the state legislature.
“If we are to continue to reap the harvest of past work anddiligence, we must seek additional public dollars to carry out themission of the chamber and IDF, specifically in the areas oftourism, retiree development, industrial recruitment and existingbusiness and industry expansion,” said Chandler Russ, executivevice-president.
The tax, if approved, would be added to the bills of overnightguests who stay in the city’s lodging establishments. The tax isestimated to generate about $60,000-$75,000 a year for tourism andretiree development efforts, and it would not greatly impact localcitizens, Russ said.
“This is the least expensive way for our local citizens to helpfund this,” Russ said.
Some local motel officials, though, expressed some concernsabout the plan. They did not think the additional tax would go overwell with guests.
“People complain about 7 percent now, much less going to 9percent,” said Margaret Glass, manager of the Best Western.
Glass and Carole Swann, manager of the Hampton Inn, questionedthe city’s status as a tourism attraction. They said their businessis mostly corporate travelers or construction workers in town forjobs, while some annual city events may generate a few extraguests.
“We do need something that will bring people to Brookhaven,”Glass said, indicating the plan could have merit if it will bringmore people to town.
Swann said the lodging tax would be another reason for people togo to other places, such as McComb, that do not have a special tax.There have been efforts to get some form of special tax in McComb,but they have so far been unsuccessful.
In addition to lost lodging revenue, Swann said guests goingelsewhere would mean money that is not spent at local restaurants,stores or other retail establishments.
If the tax is implemented, Swann said, it should go into aspecial fund for the designated purpose. Local hotelrepresentatives should have some input into spending plans, shesaid.
Russ said the chamber plans to involve and get hotel input as itproceeds with the tax plan.
With the rate being no more than 2 percent, Russ discounted thelodging tax’s possible role in sending people elsewhere. He said 46other communities in the state, and many destinations outside thestate, have some form of special tax paid by tourists.
Alderman-at-large Henry Newman, who travels as a unionrepresentative with a local industry, said the special tax was”pretty common.” He said he hoped the board would support the tax,which would apply to lodging only and nothing else.
“I’m fine with it,” Newman said. “I think it’s a good idea.”
Other state communities’ special option taxes range from 1percent to 3 percent. Russ said some are applied to both lodgingand restaurants while others are to only one or the other.
According to totals from the state tax commission, the specialoption taxes generate from over $3 million a year for HarrisonCounty to around $5,000 a year for Bay Springs.
Russ mentioned Grenada’s special option tax that generates$293,563 from a 2 percent tax on lodging and 1 percent onrestaurants and bars. Tax revenue is dedicated to tourism efforts,with 50 percent set aside in an interest-bearing account forconstruction of a convention center.
Russ said the prospects for Brookhaven developing into a touristand business haven are good.
“In order to nurture this progress, we must pick up the pace inmarketing our area regionally and nationally,” Russ said. “In orderto increase our services in these areas to the level ofprofessionalism that Brookhaven deserves, we must secure additionalpublic funding.”
Russ believes the local motels and hotels could be winners as aresult of tax-funded efforts. Increasing marketing of the city willbring more people who will need to stay at a hotel.
“I think they can actually benefit from this and not have itdetract from their business,” Russ said. “We’re going to work hardto increase their sales.”
Russ said the tax plan had received unanimous support from thechamber’s board of directors. He said the chamber has a clearmission and goal to improve efforts for tourism and retireedevelopment.
“We feel like these funds will aid in those efforts,” Russsaid.