TOWNSEND, Tenn. (WATE) — Staying at a hotel in Townsend may cost more soon, as the city is considering levying a hotel/motel tax.
According to the ordinance, the tax will be 3% of the cost of a room charged by the operator. Townsend’s interim city manager, Gayla Webb, told 6 News that the Tennessee’s tourism department reached out to the city because it was listed as the area with the highest lodging sales in the state without a hotel tax. Lodging not only includes hotels, but rental cabins as well.
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Webb added that last year, visitor stays brought in more than $18,000,000. With the new hotel tax, this would equal about $500,000 in revenue that the city could use towards tourism draws. For example, there is a park on the Little River in need of a dock repair. Since this park is considered a tourist draw, the money could be used to make the repairs.
The first reading of the tax passed 3 to 2 during a city commission meeting on August 21. However, the hotel tax is not a done deal yet. It still needs to be approved in a second vote, which is scheduled for Sept. 16. For those wanting to share their opinion or learn more, a public hearing will be held ahead of the vote…