Change to hotel tax ordinance tabled again

 

September 24, 2023



For a second time, the Alva City Council tabled discussion and action to modify the tourism tax ordinance. The modification is needed to allow the Oklahoma Tax Commission (OTC) to collect the five percent excise tax instead of that duty falling on the city. Over a year ago, the Alva Tourism Tax Committee asked the city to work on this change.

The regular council meeting Monday night, Sept. 18, was at the two-hour mark, and Mayor Kelly Parker suggested the item be tabled in the interest of finishing the meeting. City Business Manager Steve Ford said the goal was for the OTC to begin collecting the tax as of Oct. 1 so the council attempted to reach an agreement.

The ordinance change was tabled at the August meeting due to councilmember concerns about removal of language exempting permanent residents. Defining “permanent resident” was another part of the discussion. Councilmembers Joe Parsons and Daniel Winters were the most vocal about these concerns. Parsons noted that his family is involved in the motel business so he intended to abstain from voting on the ordinance.

The hotel tax was approved by Alva voters on Nov. 7, 2000. The city ordinance adopted in 2000 includes the following exemptions:

(1) Permanent residents as defined in this article;

(2) Representatives of the United State government or any agency or division thereof while on official business;

(3) Representatives of the state or any political subdivision thereof while on business;

(4) Exemptions are the same as promulgated in the sales tax code (churches, schools, 100% dsabled Veterans and anyone else who is sales tax exempt will also be exempt).

In the proposed rewrite of the ordinance, exemptions 1 through 3 have been removed. Only exemption 4 remains.

Local hotels and motels rent some rooms to people they consider permanent residents. Sometimes these are people working on a long-term project in the Alva area. But they also have renters who would like to be in an apartment or house but don’t have enough up-front money. Often they are working locally at jobs but haven’t accumulated money for deposits on housing or utilities.

The other question is how to define those in hotels and motels as being permanent. Winters said signing a lease makes them permanent. Parsons suggested a stay of one month makes them permanent.

When it became obvious the matter couldn’t be resolved easily, Sadie Bier made a motion, seconded by Troy Brooks, to table the ordinance revision. Councilmembers voted unanimously in favor of tabling.

Ford asked councilmembers with concerns about the new ordinance wording to email him or otherwise explain how they want the wording changed.

 

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