Friday, February 11, 2000
Hotel tax hike finds a local foe
Ex-Rep. Donnermeyer against it
BY PATRICK CROWLEY
The Cincinnati Enquirer
BELLEVUE A retired state lawmaker who sits on the region's tourism board says Kentucky tax money should not be used to help expand Cincinnati's convention center.
Members of Northern Kentucky's tourism industry and business community are lobbying state lawmakers to pass legislation that would allow the fiscal courts of Boone, Kenton and Campbell counties to increase the local hotel tax by 1 percentage point, or one cent on the dollar. The tax is currently 4 percent.
The increase would raise $10 million over 10 years, with the money going toward the proposed $400 million expansion of the convention center in downtown Cincinnati.
But former State Rep. Bill Donnermeyer, a Bellevue Democrat and a member of the Northern Kentucky Convention and Visitor's Bureau board of directors, said Thursday he can't understand why lawmakers would raise tax money that would be spent in another state.
You raise tax money for the people that live here, not for a project in Cincinnati, said Mr. Donnermeyer, who retired from the Kentucky General Assembly in 1994 after serving 25 years in Frankfort.
I can understand why Cincinnati needs to build a new convention center, he said. They should have done it 15 years ago. But that's their problem, and we shouldn't be paying for it now.
Backers of the bill, including the Northern Kentucky Chamber of Commerce and several area hotel operators, contend the money is an investment because some people attending conventions in Cincinnati will stay, eat and shop in Northern Kentucky.
Northern Kentucky will reap the benefits of this plan, said Jim Willman, a convention and visitors bureau board member and the vice president at the Drawbridge Inn and Convention Center in Fort Mitchell.
We can't be myopic and think "our' side of the river and "their' side of the river, he said. This has got to be a region, and we've all got to work together.
Regionalism is fine, Mr. Donnermeyer said, but when was the last time Cincinnati did something for us? Where were they when we were building our convention center?
Mr. Donnermeyer's opposition could spell trouble for supporters of the bill, who are lobbying Northern Kentucky lawmakers to pass the legislation. Many lawmakers are already wary about voting for the legislation because it involves a tax increase, even though the increase would technically be levied by the fiscal courts rather than the General Assembly.
Over the last few days, Mr. Donnermeyer has called lawmakers expressing his concerns over the bill.
Bill Donnermeyer called me and left a message that he didn't think this was a good idea, said Sen. Katie Stine, R-Fort Thomas. Mrs. Stine said she was waiting to see whether the bill makes it out of the House before deciding on how she'll vote.
Raising tax money in Kentucky and spending it on a Cincinnati project is a novel concept, said Rep. Arnold Simpson, D-Covington. I'll have to give it some more thought and talk about it with some of my colleagues before deciding anything about it.
Mr. Donnermeyer and some lawmakers have raised the question that spending Kentucky tax money on a Cincinnati project might be unconstitutional.
Money raised by the hotel tax is already spent in Cincinnati on joint marketing efforts by the convention and visitors bureaus in Cincinnati and Northern Kentucky, Mr. Willman said. And the hotels clearly benefit from increased convention business in Cincinnati, he said.
Three weeks ago, there was a huge Women in Faith convention in Cincinnati, Mr. Willman said. They had thousands of people in town. We had 150 rooms sold, and TANK had to put on extra South Bank shuttle buses to handle all the people staying in Northern Kentucky hotels.
That (convention center expansion) will help Northern Kentucky. That's why we are trying to do this.
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