Hotel group wants to raise taxes|[10/20/05]
Published 12:00 am Thursday, October 20, 2005
Members of the Vicksburg Hotel & Lodging Association will endorse an increase in the occupancy tax hotel guests pay in Vicksburg and Warren County in hopes of boosting their business.
Representatives of six member hotels at a meeting of the association Wednesday came out in favor of at least a 1-cent increase, all of which would go to the Vicksburg Convention and Visitors Bureau, saying Vicksburg’s tourism promotion efforts are lagging behind other small cities.
“If we don’t get competitive with other parts of the state, we’re going to miss out,” said Tim Darden president of the association.
Darden will draft a letter stating the endorsement to the Board of Mayor and Alderman to be signed by managers of all 10 member hotels.
Currently, people renting rooms by the night here pay a 10 percent total tax. Seven percent is the state’s general sales tax; 2 percent is for support of the Vicksburg Convention Center and 1 percent is for the VCVB.
An increase of the VCVB portion to 2 percent would bring the total rate in line with such areas as Natchez and Hattiesburg, which have occupancy taxes of at least 4 percent, Darden said.
The local tourism board was created by the Legislature at the request of local governments in the 1970s, becoming one of the state’s first such promotional groups. The tax rate has been unchanged since, and any increase would have to be approved by the Legislature, which convenes again in January.
Clara Ross Stamps, interim director of the Vicksburg Convention and Visitors Bureau, said more money would help.
“It would give us more endorsement ability for more events in our parks and recreation areas, like the President’s Cup Soccer Tournament,” Stamps said.
The VCVB budget was about $900,000 last year, Stamps said.
All managers of member hotels in the association will likely lobby city government for representation on the VCVB board to monitor how the money is spent, Darden said.
The occupancy taxes here have triggers. The 2 percent tax applies to hotels and motel rooms only in the city and with accommodations for six or more transient guests. The 1 percent tax applies countywide for hotels with six transient guests and gross income of $100,000 or more. The 1 percent tax is also added to restaurant meals and bar tabs.
In other business, the association: