PINE BLUFF -- The Pine Bluff City Council has rejected a proposal to raise the city's hotel tax by 1 percent.
Alderman Thelma Walker had proposed the increase to generate additional funds for the Pine Bluff Parks and Recreation Department.
Walker and Alderman Glen Brown Sr. cast the only two supporting votes for the measure on Monday night. Five aldermen voted no.
The city already levies a 3 percent tax on hotel stays to fund advertising and promotions. Under Walker's proposal, only funds from the additional percentage point would have been funneled to the parks department.
Walker, who is a candidate for Pine Bluff mayor, hasn't announced whether she will bring up the legislation for another vote.
When figuring in other state and local taxes, a hotel guest staying in Pine Bluff pays 14.75 percent in taxes, which is one of the highest rates in the state. The rate increase would have brought 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.
Pine Bluff's eight hotels offer a combined 517 rooms. Hotel owners and managers had been mostly mum about the proposed increase. Many owners live out of state and declined to comment.
The legislation's failure amounts to a "lost gift" for the city, Walker said.
Meanwhile, Little Rock officials have discussed raising that city's hotel tax by 2 percent to fund renovation of the Arkansas Arts Center, as well as pay for improvements to MacArthur Park and the MacArthur Museum of Arkansas Military History.
The proposal would increase the total tax levied on hotel rooms in the capital city to 15 percent, including state and local taxes.
Both the Advertising and Promotion Commission and the Little Rock Board of Directors would have to approve the hotel tax increase before voters have the final say in a special election, currently pitched to take place in February.
In Pine Bluff, Walker said she had hoped the tax increase would have funded more youth activities, such as swimming and other sports. The proposed increase would have generated about $80,000 annually, according to city officials.
Alderman George Stepps, who voted against the tax increase, said he had supported the idea when he first studied it but decided to cast a no vote.
"I don't want to go out on a limb for only $80,000 per year," he said.
Alderman Steven Mays said he voted against the measure because he felt an added tax would put an unnecessary hardship on people from out of town visiting their relatives in Pine Bluff.
State Desk on 11/18/2015