On December 4, House Bill 1601 was pre-filed by Representative Sara Walsh that would authorize a transient guest tax in the City of Ashland limits upon voter approval. The House Bill would only place the guest tax ballot.
Pre-filed HB 1601 is in response to the new concept of Cartwright Industrial Park, within Ashland city limits.
“The Mayor and I met with Rep. Walsh a couple of months ago and asked her to sponsor a Bill that would give Ashland the legal authority to place a transient guest tax (hotel – lodging tax) on the ballot for voter approval here in Ashland,” said City Administrator Tony St. Romaine.
Ashland currently has no hotels, and no hotels plans have been brought to the Board of Alderman.
“However, with pending commercial development at East Ashland Plaza and the Cartwright tract it is inevitable that at some point in the near future, there will be a recognized need for a hotel(s). Being proactive now will allow us to capture a revenue stream from the development that otherwise we would not be able to,” said St. Romaine.
The Potterfield Group’s concept of Cartwright Sports, Entertainment, and Dining Park, includes four hotels with approximately 145-rooms.
The $0.04 guest tax has potential annual revenue of $137,510 from one hotel based on 63% occupancy for a 115 room hotel at $130/night stay rate.
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