CLINTON, Tenn. (WVLT) – The Anderson County Commission passed Monday night a resolution changing how it collects occupancy taxes. It’s the latest East Tennessee county to change tax rates to fall in line with state legislation.
A Tennessee bill passed last year set a deadline of July 1 for counties and cities to limit how much money they collect from hotels and motels. After the deadline, the combined tax rate from counties and the cities inside those counties can’t go above a total of eight percent.
Monday evening, the Anderson County Commission passed a resolution scrapping its current five percent rate, replacing it with a four percent rate.
In some cases, the resolution has lowered tax rates to move in line with Tennessee’s limit of eight percent. However, another piece of the resolution means some areas will see a tax increase.
Under the resolution, the county’s tax rate now “stacks” on top of all city occupancy taxes, not just some. It’s a change for cities like Oak Ridge, which originally did not see a “stacked” county tax in addition to city taxes, which caused some concern among the commission. That concern being higher rates stifling tourism in some areas.
“I’m going to have to vote against it then,” Commissioner Stephen Verran said when discussing a potential tax increase for hotels in Oak Ridge.
That being said, Mayor Terry Frank claimed during the meeting that state estimates show the new system will bring generate $1.1 million in revenue, up from $690 thousand.
The resolution passed, 12 to four.
Story courtesy of WVLT
