Saturday, March 04, 2000
Hotel tax bill is hot potato
N.Ky. sponsor sought in Senate
BY PATRICK CROWLEY
The Cincinnati Enquirer
FORT MITCHELL — A contingent of Northern Kentucky business leaders and tourism officials will head to Pendleton County this morning looking for a state senator to sponsor the hotel tax bill in Frankfort.
The bill, which would allow Northern Kentucky fiscal courts to raise the region's 4 percent hotel tax by 1 percentage point — a penny on the dollar — passed the Kentucky House Thursday 55-29, with a number of lawmakers, including several from Northern Kentucky, not voting.
The bill has drawn opposition because the Northern Kentucky Convention & Visitors Bureau plans to use the money raised by the tax to promote convention and tourism in Greater Cincinnati, not just Northern Kentucky. Opponents say Kentucky tax dollars shouldn't be spent touting Cincinnati.
The bill cleared a major hurdle when it passed the House Thursday, though its fate is uncertain in the Senate.
“We think it looks pretty good, but we need a senator from Northern Kentucky to champion the bill,” said Northern Kentucky Chamber of Commerce lobbyist Steve Stevens.
Chamber members, convention and visitors bureau officials, and representatives of the hospitality industry plan to attend this morning's meeting of the Northern Kentucky Legislative Caucus.
The lawmakers meet at 10 a.m. at Kincaid Lake State Park, which is in Pendleton County outside Falmouth.
Northern Kentucky's four senators — Republicans Katie Stine of Fort Thomas, Dick Roeding of Lakeside Park, Jack Westwood of Erlanger and Ernie Harris of Crestwood — have given the bill a lukewarm reception.
None has said he or she will try to kill it, but none has committed to it, either.
Thursday, the bill passed the House with three Northern Kentucky lawmakers voting for it: House Majority Caucus Chairman Jim Callahan, D-Wilder; Rep. Tom McKee, D-Cynthiana; and Rep. Jon Draud, R-Crestview Hills, who supporters say helped persuade other House Republicans to vote for the bill.
Voting against the bill were Rep. Arnold Simpson, D-Covington; Rep. Joe Fischer, R-Fort Thomas; Rep. Jon David Reinhardt, R-Alexandria; and Rep. Charlie Walton, R-Florence.
Not voting were Rep. Tom Kerr, D-Taylor Mill; Rep. Paul Marcotte, R-Union; and Rep. Royce Adams, D-Dry Ridge.
The estimated $1 million a year the percentage-point increase would raise would be spent on marketing and bringing business to Cincinnati's convention center, which that city's leaders are hoping to enlarge with a $400 million project.
Northern Kentucky tourism officials, hotel owners and business leaders are touting the bill by saying more convention business in Cincinnati would benefit Northern Kentucky hotels, res taurants and retailers.
Dan Fay, president of Commonwealth Hotels, the owner and operator of four Northern Kentucky hotels, has released a study by the accounting firm of Price Waterhouse Coopers that shows the hotel room tax increase will result in nearly $13 million in new spending.
The provision of the legislation that allows an increase in the hotel tax is actually an amendment to a bill filed by Rep. Charlie Geveden, D-Wickliffe, that would allow several cities around the state to raise or implement a hotel tax.
Neither the bill nor the amendment actually raises taxes, Mr. Callahan said. “All the bill does is allow local governments to raise the tax.”
However, even if the bill passes the General Assembly, it may not be supported by the fiscal courts. Boone County commissioners have said they are unlikely to vote for the tax increase, and if any of the three fiscal courts doesn't go along with the increase, the tax can't be raised.
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