LOWELL -- The City Council voted against a 2 percent tax on hotel stays with a split vote during its meeting Tuesday.
The tax would have applied to renting or leasing hotel rooms or similar accommodations, according to the proposal. Other businesses could have included a bed and breakfast or campground. Money from the tax would have been used to promote the city, officials said.
A motion to approve the tax failed with a 3-4 vote. Council members Thomas Evers, Eric Schein and Lonnie Jones all voted against the motion. Dean Bitner, David Adams, Kendell Stucki and Delia Ingle voted in favor.
Tom Kieklak, city attorney, said the motion needed five yes votes to carry.
An Advertising and Promotions Commission also would have been created by the ordinance. The commission would have manage the money collected. Cities with similar taxes include Rogers, Bentonville and Fayetteville.
The ordinance also would have placed a 2 percent tax on renting meeting or party rooms. However, an amendment made during the meeting removed language about meeting and party room rentals. The amendment was passed unanimously.
Bitner said he spoke with a business owner who expressed concerns about the cost of purchasing a software system for their business that provided meeting rooms.
"The last thing I want to do is put a hardship on a business," Bitner said before making the motion to amend the ordinance.
Thomas Evers said the last minute amendment is one reason why he voted against the ordinance.
"I didn't like the change at the time of the meeting," Evers said. "I had to pause before voting."
The change didn't give the public enough time to respond to the new ordinance, Evers said. He also said it could be perceived as picking and choosing what the city wanted to tax.
"We either need to do it or we need not to do it," Evers said.
Bitner who has spearheaded the hotel tax discussions said he doesn't plan to bring it up again in the near future.
"You win some, you lose some," Bitner said.
Little discussion on the ordinance was made before voting during the meeting. The ordinance had been read and discussed during a meeting in March and another in April.
Schein said he had concerns about software programs businesses would have to purchase to add the tax during the April meeting. He said as a business owner he knew it could be difficult and possibly costs thousands of dollars. He owns Complete Comfort Heating and Cooling.
Money from the ordinance could have been used to promote the city including the construction of facilities to assist in promotion such as a convention center or tourist facility.
The city isn't required to put the tax to a public election, Kieklak said. He said a city could create up to a 3 percent tax on overnight accommodations via a City Council vote.
Teresa Moss can be by email at tmoss@nwadg.com or on Twitter @NWATeresaM.
NW News on 05/20/2015