Some Seeking Legislative Fix To Controversial Hotel Tax

An audio version of this report

A $5 nightly hotel tax to fund state transportation projects quietly surfaced in the final hours of this year’s legislative session.

It took effect July 1 and instantly caused confusion. 

The Georgia Department of Revenue issued an emergency order in June to help hotel operators. On the consumer side, the department also set up a toll-free number to handle questions.

Nick Genesi, a spokesman for the department, says fewer than 10 complaints have come in to that line. Georgia Hotel and Lodging Association head Jim Sprouse says hotel operators are getting a better handle on the tax.

Even so, Sprouse says he’s on a personal mission to talk to lawmakers about reducing the nightly charge.

“The fee needs to be right-sized,” Sprouse says.  

That right-sizing could come in the next legislative session.

Sprouse says state Rep. Ron Stephens of Savannah has proposed reducing the tax to $2 a night, a number “that would be more in keeping with fees you’d find across the country,” Sprouse says

Lowering the tax will likely be a hot topic at next week’s Governor’s Tourism Conference in Savannah, Sprouse says.