AGENDA ITEM SUMMARY

Consider approval on first reading of Ordinance revising the Code of Griffin, Georgia at Chapter 82, TAXATION, Article III, EXCISE TAX ON HOTELS, by increasing the rate of tax to 8.0% in accordance with Act 288 (HB 644) of the 2015-2016 Regular Session of the General Assembly of Georgia; revising the name of the Article to reflect the current title used in state law; and for other purposes. If adopted, the increased rate will become effective August 1, 2015. City Attorney Andrew J. Whalen III will address.

An excise tax of 8.0% is the maximum rate currently allowed by law and required an earlier Resolution by this Commission and enactment of local legislation ratifying such Resolution. All procedural steps have been taken to raise the rate. The local act requires enactment of a proper ordinance, which will become effective on the first day of the second month after adoption. City staff will meet with innkeepers in order to prepare them for the change.

Staff recommends approval.

Since the current rate is at 7.0%, an increase to 8.0% will yield approximately 14% more revenue; however, restrictions on expenditure of the funds may impact future use of the tax proceeds. State law was earlier amended to apply the tax to all short-term rentals of rooms, lodgings, and accommodations for hire; not just to traditional "hotels" and "motels". Staff will be reviewing other forms of lodging to determine if any are available within the City.