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E N Q U I R E R   L O C A L   N E W S   C O V E R A G E
Thursday, March 16, 2000

Hotel tax authority passes


Next stop: Patton's desk

BY PATRICK CROWLEY
The Cincinnati Enquirer

        FRANKFORT — A bill allowing Northern Kentucky fiscal courts to raise the region's hotel tax breezed through the Kentucky Senate on Wednesday by a vote of 30-5.

        The legislation has already passed the House. It now heads to Gov. Paul Patton, who has said he will sign it into law. The bill enables local governments to raise the 4 percent tax on hotel room charges to 5 percent.

        The actual increase must still be levied by the fiscal courts in Boone, Kenton and Campbell counties.

        Boone County Fiscal Court members have said they will not vote for a tax increase. The other two counties' fiscal courts have indicated they may approve it.

        The increased tax revenues, an estimated $1 million a year, would be used for marketing and other efforts to bring business to Kentucky and Ohio.

        Northern Kentucky tourism officials, hotel owners and business leaders say the legislation would help bring more convention and tourism busi ness to the Tristate area, including Cincinnati. That business would benefit Northern Kentucky hotels, restaurants and retailers.

        Backers of the bill, who have spent weeks lobbying lawmakers, said Wednesday they were happy with the first step to increasing the tax.

        “This is a good bill because it is going to encourage regionalism in our area, and it's also going to have a tremendous economic impact of almost $13 million a year for Northern Kentucky,” said Dan Fay, president of Covington-based Commonwealth Hotels and one of the chief supporters of the bill.

        Mr. Fay and Northern Ken tucky Chamber of Commerce Government Affairs Director Steve Stevens, who have worked to persuade lawmakers to support the bill, watched Wednesday's vote from the Senate gallery.

        They applauded the two Northern Kentucky senators — Republicans Dick Roeding of Lakeside Park and Jack Westwood of Erlanger — who voted for the bill. Mr. Roeding had carried the bill in the Senate.

        “Senator Roeding has really set a great example for Northern Kentucky in terms of taking a leadership position and really championing this thing through the Senate,” Mr. Fay said.

        Two other Northern Ken tucky senators — Republicans Katie Stine of Fort Thomas and Ernie Harris of Crestwood — voted against the bill.

        Mr. Fay had harsh words for Mrs. Stine, who is chairwoman of the Northern Kentucky Legislative Caucus.

        “I'm very disappointed in (her) lack of leadership,” Mr. Fay said. “I don't think she can make a decision. She hasn't taken a proactive position on anything, except to vote no or to duck an issue.”

        Mrs. Stine refused to comment to reporters after the vote.

        “It would have been a great signal to the entire state to have a unanimous vote out of our own caucus,” Mr. Stevens said.

        The bill appeared to be in trouble early in the session. It drew 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 said Kentucky tax dollars shouldn't be spent touting Cincinnati's convention business.

        Backers spent hours making their case to lawmakers that the bill will help businesses in Northern Kentucky.

        After the governor signs the bill, Mr. Fay said he will begin meeting with fiscal court members and try to persuade them to raise the hotel tax.

       



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