$2 hotel tax collections down

Published 12:00 am Thursday, June 25, 2009

NATCHEZ — Hotel tax revenues are lower than expected, and tourism officials are asking the state to see if properties are paying their taxes.

Collections of the new $2 hotel tax began in August 2008 after the special tax was approved on the June 2008 ballot.

Through April, $220,983 has been collected, Tourism Director Connie Taunton said.

Email newsletter signup

The tourism department and the tourism marketing advisory committee, which oversees how the special tax funds are allocated, projected $396,000 in collections this year.

With only three months worth of collections left in the fiscal year reaching the projection won’t happen, Taunton said.

The economy and several large groups that have stayed in hotels but not been taxed per a compensation could be contributing to lower revenues, she said.

But also, Taunton said she believes some properties may not be paying their taxes.

In May, Taunton contacted the state tax commission to look into the matter.

“They’re going to check their records against the recordings of properties I sent them that we have that should be collecting,” Taunton said.

Some bed and breakfasts report quarterly, and the time to pay taxes may not have come yet, Taunton said.

The tax is used solely to market the city and while numbers are down, Taunton said some adjustments will have to be made.

“We’re cutting back, as bad as we hate to, on some ads and projects that we wanted to do,” she said. “We’ll write those into next year.”

And with the tax just recently implemented, Taunton said the first year was bound to be somewhat experimental.