Friday, March 08, 2002

Ohio lawmakers question tax


Convention center deal faces obstacles

By Dan Klepal, dklepal@enquirer.com
The Cincinnati Enquirer

        Three Hamilton County lawmakers say they are reluctant to pass a bill that will allow the county to raise its hotel-motel tax for a $198 million expansion of the Albert B. Sabin Cincinnati Convention Center.

        Legislation pending in the Ohio House is needed to allow counties to raise the tax above 3 percent.

        County commissioners approved an increase in the tax from 3 percent to 7.5 percent on Wednesday. Cincinnati City Council earlier adopted an increase from 1.5 percent to 3 percent on a hotel room in the city.

        Rep. Bill Seitz, R-Green Township, said he's in favor of the expansion but is looking closely at the bill to see if hotels in the northern county suburbs are being treated fairly.

        “Does the plan on the table fairly apportion the benefits and burdens of this project across the entirety of the county?” Mr. Seitz asked, adding that it might make sense to amend the bill so that cities can also raise their hotel-motel tax above the limit of 3 percent.

        If the pending law also allows cities to raise their hotel tax by an additional 1.5 percent, Mr. Seitz said, the same money would be raised, but hotels outside of the city limits would pay a lower rate.

        “By providing that flexibility, we would allow local decision makers to decide what is best,” Mr. Seitz said.

        Rep. Wayne Coates, D-Forest Park, said he's not going to vote for the bill. He pointed out Cincinnati just received a potential $50 million windfall and chose to spend it on other projects. He also noted that the city could have been collecting a 3 percent tax on hotel rooms for years, but only chose to raise the rate last month.

        “The Republican Party goes after anyone who wants to raise taxes, unless it's their own,” Mr. Coates said. “I'm not about to go for this.”

        Rep. Tom Brinkman, R-Mount Lookout, called the tax hike a “scam.” He said the only way he will support the bill is if it allows Clermont and Butler counties to raise their tax, and those counties agree to do so.

        “The only way I would ever join in is if it is a truly regional approach,” Mr. Brinkman said. “Our four-county (Ohio) region has to be together because this gives an unfair advantage to the other counties.”

        Cincinnati Mayor Charlie Luken will go to Columbus next week to promote the legislation.

        “What the folks in Columbus have told us (is) for the people in Cincinnati to speak with one voice. It seems to me we've done that,” Mr. Luken said. “Now we need our state legislative delegation to champion the cause.”

       Gregory Korte contributed to this report.
       

       
       

       



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