Members of a group representing the majority of Columbia’s 35 hotels, motels and bed and breakfast operations want to prevent a 3% lodging tax increase.
Members of the Columbia Hospitality Association said the higher taxes would have a negative impact on their lodging businesses.
Some Columbia city leaders have been supporting a lodging tax increase from 4% to 7%. While the current lodging tax supports the Columbia Convention and Visitors Bureau and the city’s Tourism Development Fund, the extra 3% would help pay for about $17 million in improvements to the terminal at Columbia Regional Airport. The majority of Columbia’s hotel owners said a 3% increase is too much.
CHA President Heather Hargrove said, “The Columbia Hospitality Association supports the airport, but one industry should not be burdened with making all of those changes or improvements at the airport.”
Members of the CHA said a 3% lodging tax increase would reduce Columbia’s competitive edge in the hotel business.
Members of the Columbia Convention and Visitors Bureau are not opposing or supporting the proposed lodging tax increase. They are waiting to see if city leaders go with other options to help pay for airport improvements.
City Manager Mike Matthes wants help from the federal government.
Matthes said, “We’re communicating with the FAA to talk about their willingness to help fund a terminal. There are about three programs that they run that could do that. They’ve done that in other cities, but not every city.”
Matthes predicts a proposed lodging tax increase would not go before voters until at least the April ballot.
Members of the CHA said a 7% lodging tax would hurt the overall local economy.
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