Warrensburg Missouri
Tourism Lodging Tax
Letter submitted to a Bed and Breakfast group in response to an inquiry about such taxes. The original letter is below my response
I don't like lodging taxes, even if ALL the money goes back to tourism
promotion for the local area. Here's why:
- The people who will pay the tax have no voice in the tax - it's
taxation without representation.
- It's another form of 'corporate welfare' - even if real small business
is actually benefitted by it, the fact that other businesses take
welfare doesn't make it any more right or moral.
- It can actually harm motels that depend on construction workers, etc.,
since they are quite price sensitive.
- It opens the door for corruption or waste by the organization that
actually spends the money, typically a chamber of commerce.
- They are seldom properly audited and oversight is minimal.
- The temptation is often too great to withstand for them & they
stretch the definition of 'tourism promotion to their favorite
projects.
- They seldom have a solid plan for how they're going to generate
more overnight stays (revenue) for the people who are creating their
slush fund.
Actually, I'm outside the city limits and have a much lower tax rate
(5.725% vs 9.725%) than the B&Bs in town. That's a nice marketing tool
for me. The local 2.5 % tax passed by only 44 votes with no organized
opposition. I will say that they don't appear to have squandered as much
of the money as I'd thought they would.
Bill
--
===++===
Bill & Sandra Wayne
Cedarcroft Farm/Cottage on the Knoll B&B
Warrensburg, Missouri
"Come visit our romantic hideaway"
http://www.cedarcroft.com
===++===
> Window on the Winds Bed & Breakfast wrote:
>
> Our county will be voting on adding a lodging tax this November. Our
> current tax rate is 4%, and they are proposing a 2.5% increase (7.5%
> total). A large part of the tax collected comes back to our county
> for promotion.
>
>
> I'm for the tax, and some of the negative feelings from other people
> in the lodging industry suprise me. What a can of worms! I welcome
> your thoughts, insight, and suggestions.
>
> Thanks,
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