By James B. Bartle
Sullivan city residents will decide on Tues., Apr. 7 whether a four percent “Lodging Tax,” or bed tax, will be charged to transient guests staying in Sullivan hotels and motels.
The tax has been placed on the ballot and does not impact those who do not stay in local hotels and motels, but it has received some negative comments from local hotel owners.
The tax, if approved, would be distributed through the new Sullivan tourism board which would be comprised of two hotel/motel owners, a member of the city council and business members of the Sullivan community.
The purpose of the tax is to generate revenue for the tourism board to use to help promote Sullivan and bring in tourism dollars to the community and local businesses.
It’s estimated that the tax could bring in upwards of $80,000 annually, if all hotel and motel rooms are filled. The tax also applies in the city limits to bed and breakfast inns and campgrounds.
Although the City of St. Clair presently does not have a lodging tax, the communities of Cuba, St. James, Rolla, Washington and Pacific do have it.
The tourism board is wanting to not only promote existing events in the city, but also bring new events that would help stimulate activity in the city, such as hosting musical events, ball tournaments and other tourism geared events.
Several of the local motel and hotel owners have expressed concerns over the tax in a number of areas. The group, which has met with local tourism board members, feel that the four percent tax was too high and should have been sought at a one-half percent or two percent level. The group also feels that the tax will decrease their business rather than increase it, due to neighboring communities not charging the tax.
The concerned motel and hotels owners of Sullivan feel that they already spend a large number of dollars to promote their businesses and this money will take funds away from their businesses.
The Baymont Inn commented that their industry is suffering as it is with the economy. They commented that their advertised rates are competitive and by increasing the rate even four percent could have a dramatic result on their business.
The tourism board stated that a hotel or motel room in Sullivan that charges $89.95 during their peak season would bring in $3.60 to the tourism board.
Both groups have placed advertisements in this week’s issue for voters to consider their reasons of being in favor or against this issue.