Clarksville Mayor Joe Pitts chaired the City Council’s regular meeting on Thursday, May 2nd.
The Clarksville City Council approved an ordinance imposing a privilege tax on the occupancy of hotels, motels and other accommodations to help fund tourism.
Funds generated from the 2.75% tax will be used to promote tourism and the newly created Tourism Development Authority (TDA), which will manage the Arts and Heritage Development Council and the Roxy Regional Theatre. Funds generated from the tax will also help build a planned new performing arts center.
Clarksville Mayor Joe Pitts originally proposed imposing a 4% privilege tax, but revised that amount to 2.75% at the City Council’s regular meeting on Thursday, May 2nd.
In the first reading of the ordinance, the Customs Museum and Cultural Center was included in the TDA’s management plan. But the mayor’s amendment Thursday removed the museum from the ordinance to give the museum and TDA time to see how the plan would work, Pitts said.
The effective date of the ordinance is January 1, 2025, giving hoteliers the time they need to fulfill their 2024 contracts.
Hoteliers had asked the City Council to reduce the proposed tax to 2% in order to keep the city’s hotel tax rate below 20%.
The new tax rate will be 20.25%, plus the approved 2.75% plus 9.5% state and county sales tax and the current 8% county hotel/motel tax.
There are 44 hotels in the city.
Clarksville City Councilwoman Karen Reynolds said she thinks the tax is unfair.
“We are putting this funding mechanism in support of one industry. [all] Hotels and stores will also benefit,” Reynolds said. “While we appreciate finding different ways to provide funding, we feel this is a small portion of our community and they should not be the only ones receiving funding.” [this]”
City Councilor Deanna McLaughlin said people already come to the city for its attractions and the planned performing arts center would generate even more visitors.
“This will give people new opportunities to spend money in our businesses and communities,” McLaughlin said.
The council approved the ordinance on a 6-4 vote.
Voting in favor were Mayor Pitts and City Council members Brian Zacharias, McLaughlin, Wanda Smith, Stacey Streetman and Kelly Lovato.
Council members Amber Marquis, Travis Hallman, Wanda Allen and Reynolds did not vote.
City Council members Dajuan Little, Wallace Redd and Joe Shakinab were absent.
