PINE BLUFF -- Pine Bluff officials are considering whether to raise the city's hotel tax by 1 percentage point, with proceeds going to the parks and recreation department.
The city already levies a 3 percent tax on hotel stays to fund advertising and promotions. Only funds from the additional percentage point would be funneled to the parks department, said Pine Bluff Alderman Thelma Walker, who proposed the legislation.
The City Council will vote on the measure at its Nov. 16 meeting.
Walker said she hopes that additional funding for parks and recreation will allow for more youth activities, such as swimming and other sports.
"I have heard a lot of positive things so far about my proposal," Walker said. "The people of Pine Bluff want to support their city. This is something we need to do for our city."
When figuring in other state and local taxes, a hotel guest currently staying in Pine Bluff pays a total of 14.75 percent in taxes, which is one of the highest rates in the state. The rate hike would bring the tax to 15.75 percent, compared with 14.5 percent in Hot Springs, 13 percent in Little Rock and 12.5 percent in North Little Rock.
Bob Purvis, executive director of the Pine Bluff Convention Center, said he doesn't anticipate the rate increase -- if it passes -- to affect hotel business in the city.
Purvis said it's not unusual to see high tax rates on hotel stays and "people are not going to avoid Pine Bluff" due to a hotel tax increase. Purvis estimated the increase could generate as much as $75,000 annually.
Pine Bluff's eight hotels offer a combined 517 rooms. Hotel owners and managers have been mostly mum about the proposed increase. Many owners live out of state and declined to comment until after the City Council's final vote on Nov. 16.
Several guests of Pine Bluff hotels who were asked Friday about the tax increase were from out of town and knew nothing of the measure. Leon Tate of Mississippi said he often visits Pine Bluff on business and has never thought about taxes that are added on to his hotel bill.
"To be honest with you, I don't even pay the bills, so it doesn't matter to me," Tate said. "But I guess if I were staying here on my own dime, I would look closer."
Ralph Tucker of Little Rock, who was checking out of his room at a hotel by the Pines Mall Friday afternoon, said he does pay attention to taxes on his hotel bills, adding that "this city is low compared to a lot of others around the country. I travel a lot, and typically folks who stay in a hotel are going for the nicest rooms they can get at the best rate. The taxes are the same, no matter the hotel. So unless they go up by 20 percent, no one is really going to make a fuss."
State Desk on 11/09/2015