Saturday, February 26, 2000
Boone may block hotel tax
Foes: Keep money in Ky.
BY KRISTINA GOETZ and PATRICK CROWLEY
The Cincinnati Enquirer
FORT MITCHELL — Even if a controversial plan to raise Northern Kentucky's hotel tax wins General Assembly approval, it will likely be killed by Boone County Fiscal Court.
Two Fiscal Court members are against the plan to raise the hotel room tax from 4 percent to 5 percent, and two others won't commit to sup porting it.
Money from the tax increase of a penny on the dollar would go to the Northern Kentucky Convention and Visitors Bureau and be used to help market Greater Cincinnati tourism, including a planned expansion of Cincinnati's convention center.
The tax increase must first be permitted by the state legislature and then voted on by each of the three county fiscal courts in Northern Kentucky. If any court opposes the tax hike, it could not be enacted under state law.
Fiscal court members in Kenton and Campbell counties are leaning toward supporting the tax.
Supporters of the tax say increasing Cincinnati's convention business will help Northern Kentucky hotels, restaurants and stores.
Boone County Judge-executive Gary Moore said he wants to see full support for the project on the other side of the river before he commits himself to increasing the hotel tax. “It's hard for us to jump on the bandwagon when the band is not assembled yet,” he said.
Two commissioners, though, are not supportive.
Commissioner Cathy Flaig said she would not vote for the increase.
“People are sick to death of government involvement,” she said. “Use private money to do it. Why put it on the consumer?”
Commissioner Robert Hay agreed. He said if a hotel tax was passed there are plenty of economic development projects in Northern Kentucky to spend the money on.
“Where was Cincinnati when we built our convention center?” he said.
“Let's not send money over there where they build billion-dollar stadiums so they can watch millionaire players.”
Commissioner Rob Arnold said his inclination is to say no.
“I understand the convention center is an important thing, but my gut reaction is to say no,” he said.
Supporters of the tax say they are aware of opposition from fiscal court members in Boone County.
“We are mindful of that, but our attitude is to address one thing at a time,” said Steve Stevens, the top lobbyist for the Northern Kentucky Chamber of Commerce, one of the groups working for passage of the tax plan in Frankfort.
“It's important to take one step at a time. We're working now to get the language on the (state) books that enables the
fiscal courts to increase the tax. Maybe we won't get all the fiscal courts on the first run at this thing, but at least then we can keep trying.”
The bill that allows the courts to increase the tax is by no means a sure thing in Frankfort.
While it passed the House Local Government Committee Thursday by a vote of 15-1, other lawmakers — including many from Northern Kentucky — are skeptical about the tax hike.
The increase would raise about $1 million a year. That money would be spent on marketing the region and allow the Cincinnati convention center to dedicate more of its money on a planned $400 million expansion.
“In my county, the affected businesses want it, the affected cities want it and it makes good economic sense,” said Campbell County Judge-executive Steve Pendery. “I would support it.”
“I want to wait and see the final bill that comes out of Frankfort, but if the money comes to Northern Ken tucky with no real strings attached I'd support that,” said Kenton County Commissioner Dan Humpert.
“Spending money on a marketing plan for the entire region is a win/win for everybody on both sides of the river.”
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