Agenda Item # 1
Columbus Consolidated Government
Council Meeting
December 16, 2008
Agenda Report # 345
TO: Mayor and Councilors
SUBJECT: Hotel/Motel Tax
INITIATED BY: City Manager?s Office
______________________________________________________________________________
Recommendation: Approve a resolution requesting the Georgia General Assembly to
pass local legislation to implement a hotel motel excise tax at a rate of 8
percent in Columbus, Georgia to be effective July 1, 2009 pursuant to O.C.G.A.
Section 48-13-51(b). This would increase the current tax rate from 7 percent
to 8 percent.
Background: Columbus, Georgia currently levies a 7% hotel/motel lodging excise
tax pursuant to Columbus Code Section 19-111 and O.C.G.A. Section 48-13-51 (a)
(4.2). This 7% tax is allocated to the Columbus Convention and Visitors Bureau
(3%), Civic Center (2%), River Center for the Performing Arts (1%), and the
Columbus Convention and Trade Center (1%). The Columbus Sports Council and
Arts Council receive an allocation from the 3% designated to the Columbus
Convention and Visitors Bureau.
In 2008, changes to the state law allow counties and municipalities to increase
the tax rate to 8%. Passage of this resolution and a local act of the General
Assembly are required before levy of such tax at a rate of 8%. O.C.G.A.
Section 48-13-51(b)(4) requires the county to adopt a resolution specifying the
tax rate, identify the project or tourism product development purposes, and
specify the allocation of proceeds.
The 8% will be allocated to the Columbus Convention and Visitors Bureau (4%),
Civic Center (2%), River Center for the Performing Arts (1%), and the Columbus
Convention and Trade Center (1%). The Columbus Sports Council will be
allocated 1% of the amount designated to the Columbus Convention and Visitors
Bureau. The Arts Council will continue to receive an allocation from the
amount allocated to the Columbus Convention and Visitors Bureau.
O.C.G.A. Section 48-13-51(b)(6) requires that 5% shall be expended for
promoting tourism, conventions, and trade shows, supporting a facility owned or
operated by a local government or local authority, supporting a facility owned
or operated by a state authority. O.C.G.A. Section 48-13-51(b)(5) requires
half of the remaining 3% to be expended for promoting tourism, conventions, and
trade shows by the destination marketing organization designated by the county
and the other half of the 3% to be expended for tourism product development.
The Columbus Convention and Visitors Bureau will be designated as the
destination marketing organization.
The majority of the representatives from the hotel/motel industry support this
increase to 8% and the additional 1% allocation to benefit the Columbus Sports
Council.
Analysis: The hotel/motel tax generates over $4 million annually.
Alternatives: If this resolution is not passed, the hotel/motel tax will remain
at 7%.
Financial Considerations: The increase of the hotel/motel tax to 8% will
generate additional revenue for the purpose of promoting tourism in Columbus,
Georgia. An additional $550,000 is estimated to be collected.
Legal Considerations: In accordance with O.C.G.A. 48-13-51, council is
required to approve this resolution in order to change the hotel/motel excise
tax to 8%. If approved by council and passed by the Georgia General Assembly,
Columbus Code Section 19-111 will need to be amended.
Recommendations/Actions: Approve a resolution requesting the Georgia General
Assembly to pass local legislation to implement a hotel motel excise tax at a
rate of 8 percent in Columbus, Georgia to be effective July 1, 2009 pursuant to
O.C.G.A. Section 48-13-51(b). This would increase the current tax rate from 7
percent to 8 percent.
HOTEL/MOTEL TAX ALLOCATION
Effective July 1, 2009
Allocation pursuant to O.C.G.A. 48-13-51(b)
Total Hotel/Motel Tax Rate 8%
Project: Promotion of Tourism
O.C.G.A. Section 48-13-51(b)(6) requires that 5% shall be expended for
promoting tourism, conventions, and trade shows, supporting a facility owned or
operated by a local government or local authority, supporting a facility owned
or operated by a state authority.
Civic Center 2%
Columbus Convention and Trade Center 1%
River Center for the Performing Arts 1%
Columbus Convention & Visitors Bureau 1%
5%
O.C.G.A. Section 48-13-51(b)(5) requires half of the remaining 3% to be
expended for promoting tourism, conventions, and trade shows by the destination
marketing organization designated by the county and the other half of the 3% to
be expended for tourism product development. The Columbus Convention and
Visitors Bureau will be designated as the destination marketing organization.
Columbus Convention & Visitors Bureau 3%
The Columbus Sports Council will receive an allocation equal to 1% of the 8%
hotel/motel tax. The Columbus Arts Council will continue to receive an
allocation from the Columbus Convention & Visitors Bureau.
A RESOLUTION
No.
WHEREAS, O.C.G.A. Section 48-13-51(b) authorizes the levy of an excise tax at a
rate not to exceed 8 percent of the charge for the furnishing for value to the
public of rooms, lodging or accommodations;
WHEREAS, the Consolidated Government of Columbus, Georgia currently levies such
an excise tax (hotel-motel tax) at a rate of 7 percent pursuant to Columbus
Code Section 19-111 and O.C.G.A. Section 48-13-51(a)(4.2);
WHEREAS, the Columbus Council desires to levy such tax at a rate of 8 percent
pursuant to O.C.G.A. Section 48-13-51(b), to be effective July 1, 2009;
WHEREAS, this Council desires the allocation of proceeds of such tax to follow
the distribution scheme and purposes attached hereto;
WHEREAS, pursuant to O.C.G.A. Section 48-13-51(b)(5), the Columbus Convention
and Visitors Bureau is hereby designated as the destination marketing
organization for Columbus, Georgia;
WHEREAS, passage of this Resolution and a local Act of the General Assembly are
required before levy of such tax at a rate of 8 percent;
WHEREAS, this Council desires the Georgia General Assembly to pass such local
legislation as necessary to implement such tax at a rate of 8 percent in
Columbus, Georgia.
NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA HEREBY RESOLVES:
Pursuant to O.C.G.A. Section 48-13-51(b), we hereby request that the Georgia
General Assembly pass such local legislation as may be necessary to implement
such excise tax at a rate of 8 percent in Columbus, Georgia, with such 8
percent tax to be effective July 1, 2009. Pursuant to O.C.G.A. Section
48-13-51(b)(5), the Columbus Convention and Visitors Bureau is hereby
designated as the destination marketing organization for Columbus, Georgia.
Let a copy of this Resolution be forwarded to each member of the local
legislative delegation to the Georgia General Assembly.
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Introduced at a regular meeting of the Council of Columbus, Georgia held on the
_______ day of ____________, 2008 and adopted at said meeting by the
affirmative vote of ______ members of Council.
Councilor Allen voting ___________________.
Councilor Anthony voting__________________.
Councilor Baker voting____________________.
Councilor Barnes voting___________________.
Councilor Davis voting____________________.
Councilor Henderson voting________________.
Councilor Hunter voting___________________.
Councilor McDaniel voting_________________.
Councilor Pugh voting_____________________.
Councilor Woodson voting__________________.
______________________________ ______________________________
TINY B. WASHINGTON JIM WETHERINGTON
CLERK MAYOR
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