VENDOR WRITING - NORMA B.

Proposed Hotel Tax Could Cause ProblemsFor Those Who Call Hotels Home

BY NORMA B., CONTRIBUTOR VENDOR

In order to fund the proposed new stadium, a one percent increase in the hotel tax raising it from six to seven percent is currently under consideration. According to a recent article in The Tennessean, The Tennessee General Assembly Fiscal Review Committee says this will generate approximately $10 million.

Many people think this will only affect those who visit Tennessee, but that’s NOT the case. It could be devastating to those who actually live in a hotel/motel.

One percent may not sound like much of an increase, but to those who call a hotel/motel home, believe me when I say it adds up quick!

Consider the following rates:

• $65-$100 + tax per day comes to $1,950-$3,000+ tax per month. It is important to note that some hotels require you to check out after 21 days (Super 8 in Hermitage); or 28 days (Savoy Motel in Nashville). You can check back in after 2 days, but I’m not sure what you’re supposed to do in the interim. (This way they can ALWAYS charge taxes because you never get to 30 or 90 days for the taxes to fall off.)

• $300-$800 + tax per week (* in some cases the taxes are included in the weekly rate) which adds up to $1,200-$3,200 per month these are mostly the extended stay hotels/motels like In Town Suites or the Suburban Extended Stay. (For the true extended stay hotels, one set of taxes roll off after 30 days, and the remaining taxes fall off after 90 days.) With rates like that, one percent takes on a whole new meaning, doesn’t it?

At this point, I feel it necessary to mention that even though the taxes fall off at some of the hotels they often find creative ways to make up the difference or to reinstate the taxes. How? Suppose you have to change rooms due to a maintenance issue or for repairs. Even though you didn’t request or initiate the move, and it’s not your fault, your taxes could potentially start over.

Similarly if you are tax exempt, the hotel may increase your room rate under the guise of renovations, yet the renovations never materialize. I once heard of a rate that jumped from $279.83 to a whopping $388.88. That’s an increase of $109.05 per week. Imagine a single woman working two jobs just trying to make the rent. (I knew the person this happened to and to make matters worse, she lost one of her jobs.)

Another way the hotels potentially short-change their “residents” is by no longer allowing them to accumulate rewards points for their extended stays. (I lived at an extended stay hotel for four and a half years and I accumulated around 400,000 rewards points. After three and a half years I still have around 30,000 points left.)

Paying such high rental rates it should come as no surprise that these people are often forced to choose weather to pay a full week’s rent or buy food to feed themselves and their families. (Where I stayed, you had the option to pay four days or more at a time to get the discounted rate.)

Further proof of this is shown by the many times I have people who bring bags/boxes of food to my chair. (Most of my customers know I don’t drive so they deliver food, often trading these items for a paper.) People from the hotel will come by and ask about the food and will I share what I have with them. (It’s SO cool to see a kid’s face light up over something as simple as peanut butter and jelly and a loaf of bread — even wheat bread or crackers.)

By now you may be wondering why would anyone pay such astronomical rates? Why not just rent an apartment?

It is a fair question and I can see why you might think that, but one thing to keep in mind is that when you live in a hotel, all the other bills typically associated with a home — lights, water, phone, cable, etc. — are included with your rent.

But honestly, there could be any number of reasons why someone doesn’t get into traditional housing. Here are just a few examples:

1. They don’t qualify for an apartment because of their income. Most apartments require you to make two and a half to three times the rent. With the rising cost of rent these days that can be a challenge.

2. There may be something on their record to prevent them from renting an apartment such as an eviction, or maybe they have a criminal record so they can’t pass a background check.

3. They may only be here for a short period of time and don’t want to get locked into a long-term lease.

4. It could be that they don’t have the funds needed to move 1st and last months rent, electric and water deposits, etc. Moving is expensive!

Regardless of the reason, to ask someone who is already paying such high rates to pay even more in order to fund a new stadium is making an already difficult situation virtually impossible for some.

Furthermore it could lead to an increase in homelessness if these individuals can no longer afford the rent and end up on the street.

If they are determined to build a new stadium, one can only hope that they find a better way to fund it than this.