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- Council OKs hotel-motel tax hike
- SUNNYSIDE (Monday 10-26-98)--The city council this evening indicated support for a two percent increase in the city's hotel-motel tax.
The tax would rise from two percent of the charge for a room to four percent. It's expected to bring in another $36,000 a year.
A new state law allows the tax increase, and says cities now can spend the increased tax revenue for new things. Before the tax can be levied, the city needs to appoint a "lodging tax advisory committee."
City fathers agreed to "look into" forming the committee at tonight's meeting.
The group will be made up of two motel operators, two promotional types (example: Chamber officials) who spend the tax revenues, and a city councilman.
Dollars now go for brochures and publications promoting the city.
Under the new law, bucks also could be spent for a broadened definition of tourism promotion, advertising, publicity, operating tourism agencies (presumably with staff), and marketing special events and festivals.
When folks come from out of town and stay in a local motel, a hotel-motel tax is included in the price of their room. That tax is collected by the motel owner when the guest pays for his room.
If the city increases that tax, the motel owner has a choice. He can raise his room rates and simply collect more tax for each room he rents out. Or, he can leave his rates the same and take a loss after the new tax kicks in.
Councilman Don Vlieger, who owns a local bed and breakfast, excused himself from the discussion.
Councilman Mike Farmer approved the tax hike, calling it "painless" to the city. "People won't go to Grandview" to find a motel because of the tax increase, Farmer said.
Councilman Errol Brown noted other towns are already charging more tax than Sunnyside now does.
A glance at the phone book indicates Sunnyside hosts an estimated half dozen or so motels and B&Bs that would be affected.
In other business, the council:
- Approved spending a budgeted $112,000 for the repair, upgrading, and upsizing of the city's water delivery system.
- Approved spending a budgeted $88,000 on more urgent repairs of parts of the city's sewer system.
- Approved spending $46,000 to repair 40-year old headwater screens at the city's wastewater treatment plant. The screens would remove plastics and other inorganic objects from the water and improve plant efficiency.
- Approved a $28,000 expenditure on redesigning the East Lincoln Avenue Project, which now will include parking along the full length of the corridor on both sides.
- Heard a budget report from City Mgr. Don Hahnfeldt. Department heads have turned in their budget requests 1.5% over expected 1999 tax revenues. So Hahnfeldt kicked them back to his top staff so they could pare down their wish lists.
- Noted the county's Boundary Review board will conduct a public hearing Nov. 4 about Sunnyside's annexing the huge C. Speck Motors operation. City Attorney Mark Kunkler has met with County Planner Dick Anderwald and expects things to go without a hitch. "We look forward to a speedy approval," he said.
- Noted the Youth Coalition is "off to a great start". Sunnyside supports the grassroots Coalition of schools, churches and civic groups.
- Noted the city is close to an agreement with Yakima County once more to hold district court for 200 "patrons" beginning Jan. 1, 1999. This came after a meeting among City Mgr. Hahnfeldt, Dist. Court Judge George Colby, Mayor Ed Prilucik, Municipal Court Clerk Debbie Mendoza, Commissioner-elect Jesse Palacios, and City Atty. Mark Kunkler. Things are looking up for city-county cooperation in many areas, Hahnfeldt said.
- Noted the U.S. Justice Dept. has tapped Sunnyside for mutual sharing of drug traffic information. Police Chief Wallace Anderson said the feds will pay for a new computer and installation, and allow Sunnyside officers to input, read, and change info in a national database. Sunnysiders won't pay a dime for it.