One local county commissioner has made a request to increase the county’s hotel/motel tax with the new proceeds to be used to promote local tourism.

During last week’s County Commission Budget Committee meeting on Thursday, Third District Commissioner Tony Luna asked the committee to consider an action to increase the current hotel/motel tax from five percent to eight percent.

The five percent tax was established through a Private Act by the Tennessee General Assembly in 1995. The commission would have to ask for an amendment by the state legislature in order to increase the tax to eight percent. A three percent raise is the maximum amount the rate could be raised in a year.

According to Luna, the local hotel/motel tax this year was projected to generate $210,000, but the county has already taken in more than $232,000 with still two more months remaining in the budget year.  The money from the hotel/motel tax is allocated to the county’s general fund.

“It’s never been raised,” said Commissioner Luna. “The budget estimate for this year was $210,000 but so far we’re already at $232,000 which tells us that we are really growing in this county and even in the last five years it shows the growth we have gotten out of this from just the tourists coming in.”

“If we raise that tax to eight percent, it will generate between $75,000 to $125,000 depending on how many people come here. I would like to see that go toward marketing of our area, including Smithville, Center Hill Lake, and DeKalb County as a whole. That will bring more people in who will stay in these short-term rentals, and if we ever get a hotel or motel, we will generate more funds from that.”

“These folks are going to come in and spend money here, which goes on our local option sales tax, part of which is for schools and other projects we are trying to fund. It’s almost like free money,” Luna told the committee.

“The last time you rented a place and went on a vacation, did you check and see what your tax was? Nobody does. They pay that fee,” said Luna. “Another good thing is that nobody local is going to pay it. Only visitors coming in.”

“I would like to see it be earmarked just for the marketing of this area, because it will pay us back in dividends on the back end. Suzanne Williams (Chamber Director) applies for grants all the time, and she has gotten $450,000 in grants so far this year, but there are some grants she doesn’t apply for because they are matching grants and these are funds that we could use toward that. We might turn $10,000 into $100,000.”

“If you look at this area, Center Hill Lake is the number one search and the Jamboree is second. But, the Jamboree is only for one weekend. We have 51 other weekends that we could do something and that’s why I would like to see this happen,” said Luna.

The budget committee has not yet acted on Commissioner Luna’s request.