Did They Or Didn't They
|What's wrong with this picture? As I passed one of
the News Herald's paper boxes the bold head line caught my attention,
"Council gives unanimous hotel tax nod". I stopped to read more when
just below the first article I saw "No tax hike required to balance
budget". I suddenly became confused, did they raise taxes or didn't
they? My curiosity was peaked to the point that I almost broke down and
bought a paper but then I got hold of myself and waited for my used
In the no tax article, it is explained that no tax increase was necessary due to the healthy general fund reserve. In the hotel tax article, it is explained that the proceeds from the new tax will go to the general fund. According to mayor Brookshire, eight of the eleven motels in Loudon County are in Lenoir City. Loudon County currently has a hotel/motel tax in place and last year collected nearly $300,000.00 from the tax. Using the simple math with the county numbers, the city stands to pocket an additional $225,000.00 annually for their general fund.
Many of the hotel rooms in Lenoir City have become residential rather than transient. So the statement that there will be no tax increase on Lenoir City residents isn't entirely correct. None the less, Lenoir City council did raise taxes, again, and you can bet this won't be the last time.