Wednesday, March 20, 2002
Lodging tax debate starts anew
State legislators balk at county's planned increase
By Dan Klepal, dklepal@enquirer.com.
The Cincinnati Enquirer
COLUMBUS Political leaders trying to find a way to pay for the $198 million expansion and renovation of the Albert B. Sabin Cincinnati Convention Center have to return to the negotiating table.
Strenuous suburban objections to a hotel tax increase have once again delayed necessary state legislation to pay for the expansion.
Rep. Ron Young, R-Leroy, said his State Government Committee needs more clarity from Hamilton County officials and lawmakers before it proceeds with a bill that would allow Hamilton County to raise its hotel tax above 3 percent.
Obviously, everything isn't in line yet, Mr. Young said. We're not going to ram this down the throats of a large number of people.
In anticipation of the legislation, Hamilton County commissioners approved a tax increase from 3 percent to 7.5 percent on all hotel rooms, effective next Jan. 1.
That decision means most lodgers in Hamilton County would pay a tax rate of 16.5 percent a 3 percent city tax, a 7.5 percent county tax and 6 percent sales tax. Most of the county's hotel rooms are in cities that, like Cincinnati, have their own 3 percent citywide tax.
About two dozen suburban officials on Tuesday told the committee that the size increase being planned would damage hotels in their communities. They said they would not support any increases that takes their effective overall rate above 14 percent.
We are not asking you to micromanage Hamilton County, Sharonville Mayor Virgil Lovitt said. We are asking you to protect us.
The only way to ensure a 14 percent tax in the suburbs would be for the legislature to allow the county to raise its bed rate by just 2.5 percentage points, while allowing the city to raise its rate by 2 points, Mr. Lovitt said.
State Rep. Patricia Clancy, R-Colerain Township, asked Mr. Lovitt why the legislature should get involved in that decision.
If not, then why are we here in the first place? Why don't we just eliminate all of the caps? Mr. Lovitt said. We need you to protect those of us who cannot vote on this at any level.
Hamilton County Commissioner John Dowlin also asked for a delay in the vote.
Unless you reduce the amount the county can raise its tax, there will be no negotiations, Mr. Dowlin said. No one feels they have to negotiate with us because it's already a done deal. It will only happen with legislative encouragement.
Raising the county hotel tax to 7.5 percent would generate $7.8 million a year to pay the biggest chunk of $141 million in construction bonds.
Suburban hotels account for more than half of the hotel revenue in the county. There are more than 3,000 hotel rooms in Sharonville alone, while downtown Cincinnati has 3,300 rooms.
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