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By SUE RYAN
News staff writer
July 30, 2008
From a
small bed and breakfast to big hotels, business owners turned out Monday
night at Hood River City Council to protest a proposed 2 percent increase
in the city’s lodging tax.
That
included Jane Nichols, who owns and operates the four-bedroom Hood River
Bed and Breakfast.
“I have
already quoted prices to my guests into the coming months that I basically
have to eat because I can’t go back to my customers and pass it on to
them,” Nichols said.
The
council was considering the increase to raise revenue to address the issue
of shortfall in the city’s budget. The tax has not been raised within the
last five years. The council had initially come up with the idea at a
February goal-setting session and directed staff to bring it forward.
Other
hotel operators spoke to how the depressed economy makes it even more
difficult to raise taxes for them now.
“It’s the
wrong tax at the wrong time in the wrong place for the wrong reason,” said
Brian Cunninghame, who owns the Hood River Hotel.
“My
concern is the city has a clear idea for the 30 percent but not any at all
as to how the remaining 70 percent would be spent.”
That
division is set by state law. The revenues from the transient room tax are
split between the city and the county’s visitor council, which receives
the larger amount. Hood River County Chamber of Commerce coordinates the
council.
Chamber
Director Mary Closson said while the chamber had visited with some of its
members, it did not have an official position at this time. She indicated
the chamber would be talking with its members in coming weeks about the
issue.
Carol
York, a former county commissioner, spoke about the competition facing
those in the tourism industry.
“We are
competing very tightly against Bend and the coast right now,” she said.
The
transient room tax in Bend is 9 percent while it is 8 percent in Seaside.
For Hood River County and Cascade Locks, the transient room tax is 8
percent.
While the
council tabled the issue until its second meeting in August, the ensuing
discussion following public comment brought up unresolved issues.
Councilor
Arthur Babitz said he understood the issues facing the tourism industry
but that the city is limited as to the different ways it can raise money.
“I’m sure
tourism is a positive force on our economy but in terms of funding city
services we’re severely restricted by structure,” Babitz said.
He used
the example of how tourists may eat at a restaurant and that keeps people
employed, but the city doesn’t receive any money from it to fund city
services such as fire, ambulance, streets or utilities.
Mayor
Linda Streich said her issue with the proposal is that only half of the
tourists who come to Hood River spend the night. She sees that as putting
the burden for paying solely on them.
“Day
trippers get off scot-free,” she said. She was in favor of exploring ways
to tax daytime visitors.
Councilor
Paul Blackburn reminded the council that they still have a problem to
solve that isn’t going away.
“Now we’re
telling Mr. Francis to balance the budget without a way to come with the
$44,000,” Blackburn said.
He said
the city council ran into the same arguments when it tried a food and
beverage tax a few years back, and a city sales tax.
“I would
just like us to quit circling around the problem,” he said.
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