Hotels not happy about bed tax plan


7/20/2008

By TIM UNRUH

Salina Journal

A proposal to raise taxes people pay to stay in a Salina hotel or motel has snared some attention from those who rent rooms.

Salina City Manager Jason Gage will outline during the city commissioners' study session Monday, a proposal to raise the transient guest tax (bed tax) from 5 percent to 6Ôªø1âÑ2 percent to help pay for renovations to the Salina Bicentennial Center.

The proposal is planned for the commissioners' study session that begins at 2:30 p.m. Monday in Room 107B at the City-County Building. No action on the proposal will be taken Monday.

"I think any time prices and taxes go up and you're passing it on to your customers, it's a concern" said Jan Weis, one of the managers at Best Western Heart of America Inn, 632 Westport. Her husband, Tom Weis, is one of the inn's owners.

"Prices are tough for everyone. Everyone's complaining about gas prices, so if the cost of a motel room goes up, it's going to have an effect on the customer," Jan Weis said.

When America's Best Inn, 429 W. Diamond, rents a room, the customer pays $7.23 in taxes on weekends when rents are higher, and $6.62 on weekdays, said Shelby Cadwell, a desk clerk. Her mother, LeAnn Cadwell, is the manager.

"If they raise the tax, we think less people would stay. They would decide it's too much and move onto the next hotel or another town," Shelby Cadwell said. "We have a lot of regulars. If we raise (prices) on them, they might walk out on us and go find somewhere else to stay."

Keith Rawlings, the Bicentennial Center's manager, said he understands those concerns during a time when prices are rising in many areas. But he questions whether a 1Ôªø1âÑ2 percent increase would chase customers away.

"I travel, too. I really don't believe that I make a decision on where I'm going to stay based on the rate of the bed tax," Rawlings said.

Compared to bed tax rates charged in other cities in Kansas, he said Salina is in the lower to middle range.

If commissioners approve the increase, Rawlings said the level of renovations to the Bicentennial Center depends on the dollars that are available.

"The initial thought is somewhere around $2 million," he said.

Topping Rawling's list of priorities is renovating and expanding the kitchen to serve more people. It was originally built as a catering kitchen, but now is preparing meals for up to 1,600.

Next is upgrades to Heritage Hall, such as improving on its appearance, wireless Internet gear and the sound system.

"It's pretty vanilla. It needs to look more like an exhibition hall, perhaps a ballroom," Rawlings said.

Third on his list is improving the sound system in the arena and renovating the concourses where concession stands are located.

He said the city has done a "remarkable job" of maintaining the Bicentennial Center, which is nearing 30 years old.

"We're to the point where we can't just keep maintaining it. We have to successfully compete with other facilities," Rawlings said.

n Reporter Tim Unruh can be reached at 822-1419 or by e-mail at tunruh@salina.com.





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WhatsUp says....
Would you like some cheese with your whine? Will a hotel guest drive another 30 to 80 miles (roundtrip from Salina) so they can save two dollars? Not if you show them your calculator and let them figure it out for themselves. Get real.
7/20/2008



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