LOWELL -- City Council members voted during their regular meeting Tuesday against fast-tracking a vote for a 2 percent tax on hotel stays.
The tax would be on renting or leasing of hotel rooms or similar accommodations. Other businesses could include a bed and breakfast or campground.
In Other Business
The Lowell City Council approved $21,000 for the purchase of mobile radio and body cameras for the Lowell Police Department.
The council typically suspends a state law that requires an ordinance to be read three times at three different meetings. Suspending the rule allows the council to vote on an ordinance at the first meeting it is presented.
Aldermen Eric Schein and Lonnie Jones voted against a motion to suspend the three readings for the tax. A two-thirds vote of the board was needed to pass the motion. Keith Williams, Kendell Stucki, Dean Bitner and David Adams voted in favor. Thomas Evers was absent and one seat is vacant.
Schein and Jones said they were both against the ordinance.
"I feel sometimes that we miss use some of our funds," Schein said. "I am 100 percent not in favor of increasing taxes."
A recent approval of a new position at the animal shelter was a misuse of money, Schein said.
Jones said he wasn't for or against the tax, but felt he wasn't the right person to decide.
"My personal opinion is any time there is a tax increase it should go before the voter," he said.
Mayor Eldon Long said the city has been advised the issue does not need to go on a ballot. He said it could be approved by the council.
An Advertising and Promotions Commission also would be created if the ordinance passes after the three readings. The commission would manage the money collected.
Bitner, who has spearheaded the proposal, said the money could only be used for advertising and promotion of the city.
"One thing we are not doing is growing like we all want to grow," Bitner said about the city. "A tax like this would help us grow."
Most of the cities in Northwest Arkansas have the tax, he said. He said the cities have used the money to hold events and attract visitors.
Stucki said the tax would be paid by people traveling through the city.
"Are you held up because of the three letter word tax?" Stucki said to Schein and Jones. "This won't affect the citizens of Lowell. I am not a big tax guy either but this is different."
Lloyd Showalter, a planning commissioner, spoke in favor of the ordinance during a public comment session at the meeting. No one else spoke during the comment session.
"As a planning commissioner, I have seen numerous requests, for Lowell but few are commercial," Showalter said. "We need the tax revenue from commercial property. If we don't, we are going to be absorbed by a larger city. I support this tax."
The ordinance also will place a 2 percent tax on the renting of meeting or party rooms. It excludes accommodation rentals longer than 30 days.
Money can be used to promote the city or to construct a convention center or tourist promotion facility within the city, the ordinance states.
The motion will need a second reading at the council's April 21 meeting, city officials said. The council could approve to read the ordinance a third time at that meeting. It also could decide on reading it a third time during its May 19 meeting.
NW News on 03/18/2015