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Delinquent taxes trouble county CVB

Wednesday, July 16, 2008
By ADAM COATES, Assistant Editor

The law is clear: hotel operators are required to set aside a certain percentage of their profits each month to give to their local tourism council. In turn, the councils are supposed to use the money to promote tourism to the area.

But in the case of the Putnam County Convention and Visitors' Bureau, some local hotels have repeatedly failed to pay their monthly dues to the bureau, leading local tourism officials to call for tougher rules.

The CVB has already gone to court this year to get one of the motels at Cloverdale to pay about six months of past due taxes, an estimated $9,000.

CVB Director Karla Lawless told the tourism board Tuesday night that the motel has since made good on the delinquent funds.

Earlier this year, the bureau took legal action against a Greencastle bed and breakfast for not paying its monthly innkeeper's tax. That case has been resolved as well, but tourism officials are growing weary with such actions.

On Tuesday night, the tourism board agreed to review the state law regarding the innkeeper's tax and the penalties for hotels that fail to pay the tax with the possibility of making them tougher.

Currently, hotels that fail to hand over funds to the CVB by the 20th of each month are assessed a 10-percent penalty, Lawless said. But this hasn't proven to be much of a deterrent locally.

In addition, the CVB can order an audit of the hotels' books and even request they not be allowed to operate, Lawless added.

The tourism board plans to look at the issue at a future meeting and propose possible changes to the rules.

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  • You can't be serious. A motel owes $9000 for 6 months? For one motel? What a rip off; no wonder they aren't paying. That board doesn't do $9000 worth of work in a year, let alone mulitplying it by all the inns, hotels, and motels. Could this possibly be another of the well-know BG typos?

    -- Posted by unbiased on Wed, Jul 16, 2008, at 7:32 AM

  • No it's just an inability to comprehend what's read. It says ".. six months.." not one.

    -- Posted by FAW on Wed, Jul 16, 2008, at 9:49 AM

  • People it is time to unite and stand up to OUR goverment. They are going to have to find another way to operate instead of taxes,taxes,taxes,taxes. Enough IS enough

    -- Posted by giveadamntaxpayer on Wed, Jul 16, 2008, at 9:49 AM

  • Yes, it seems to be another typo. And to giveadamntaxpayer, you can stand up and unite all you want. YOUR taxes and everybody elses does not go to support that board. They are solely funded out of the hotel tax. NOTHING comes out of county taxes. Not so sure if I would mind it anyway. We all pay for illegals, we pay for pregnant teens, we take care of babies through the wick program. Are you standing up and uniting over that? If you want to stand up, then stand up to that! That board is not funded through COUNTY TAXES! Do your research like I did. Do you stay at a hotel? If you do, you pay that tax to the hotel in the county where you stay. Or do you just hole up in your house and b....? And you say no wonder they aren't paying? Doesn't matter, it's called the law. They have to pay it whether you think a board is not doing their job or not. Why don't you go in and volunteer to unload 200-300 cartons of paper for them. I've seen them do that by themselves. DO YOUR RESEARCH. And then bi... about something that you could change for the good!

    -- Posted by whodouthinkur on Wed, Jul 16, 2008, at 1:17 PM

  • Yes, it seems to be another typo. And to giveadamntaxpayer, you can stand up and unite all you want. YOUR taxes and everybody elses does not go to support that board. They are solely funded out of the hotel tax. NOTHING comes out of your pocket or county taxes. Not so sure if I would mind it anyway. We all pay for illegals, we pay for pregnant teens to be taken care of, we take care of babies through the wick program. If you want to stand up, then stand up to that! that board is not funded through COUNTY TAXES! Do your research like I did. You stay at a hotel, you pay a hotel tax in that county. The commissioners are paid and they don't earn their keep either. So do your homework next time! Put up or shut up.

    -- Posted by whodouthinkur on Wed, Jul 16, 2008, at 1:29 PM

  • Whether or not you agree with this tax is not the issue here. When customers pay their hotel bill, they pay extra for this hotel tax. The hotels who don't pay are keeping that extra and it doesn't belong to them.

    -- Posted by TD on Thu, Jul 17, 2008, at 8:20 AM

  • If the CVB did anything to promote Putnam County, motels would not mine paying. Think what $9,000 might do to promote the PC Museum or other places in PC.

    -- Posted by DRL on Fri, Jul 18, 2008, at 3:14 PM

  • Whether you think anyone does anything or not, it is a law that they have to pay the tax. Go in and check to see what it is they actually have to do in promoting this county. Does the Putnam County Museum promote the county as a whole? Are they open 7 days a week? Check out the facts before you speak! It seems the museum only promotes itself. Where do you think the money comes from that supports the museum or any other agency in this county?

    -- Posted by whodouthinkur on Mon, Jul 21, 2008, at 7:11 AM

  • Does the Putnam County Museum pay hotel tax? No, so therefore by logical thinking, why would anyone else have to support the museum. They opened the doors, not anyone else. Alot of businesses are being promoted even though they don't pay for the bureau's services. They get all this done FREE. I don't believe the bureau has their hand out asking for this and asking for that. Get your facts straight, do I sense a little sarcasm or jealousy from DRL?

    -- Posted by whodouthinkur on Mon, Jul 21, 2008, at 7:41 AM
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