Stonecrest City Council amends hotel/motel tax to reflect reduction

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The city of Stonecrest, this year, will collect only 5 percent of the taxes levied on lodging for hotel/motel guests. The Stonecrest City Council amended its hotel/motel tax ordinance on July 24 to collect only 5 percent—not 8 percent as it had approved on June 19.

City Attorney Thompson Kurrie said the city would be able to collect the full 8 percent, as DeKalb County had before the new city was formed, with the approval of state legislators.

Meanwhile, city officials said 3 percent of the hotel/motel taxes would be used for the city’s general operating fund, while the remainder would be used for tourism and marketing provided by a separate nonprofit contracted by the city.

Adrion Bell, the city’s communications director, said letters concerning the reduction have been mailed to hoteliers located within the city seeking payments beginning Aug. 1. He said the city has nine hotels/motels within its jurisdiction.

In other action, the City Council adopted an ordinance authorizing Iberia Bank to issue the Tax Anticipation Note to cover the city’s expenses until its revenues come in. Under the terms with Iberia, the city could borrow up to $579,000 at 2.92 percent (tax exempt) and up to $1,000,000 at 4.33 percent(taxable rate) and draw the money on a line of credit established through Iberia Bank. The money borrowed must be paid by Dec. 29.

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