Potential Hotel-Motel Tax Could Affect Pickett Co. Marinas

A hotel-motel tax in Pickett County could potentially have an affect on local marinas and lodges around Dale Hollow Lake.

East Point Marina owner Richard DeVries said a five-percent hotel-motel tax may impact how tourists decide to spend their money.

“When you talk about the price of a house boat, or the price of a large cabin, or even a small cabin, it makes a huge difference in what a customer can rent,” DeVries said. “They won’t drive as far. They’ll go to Lake Cumberland and they’ll stay in Kentucky.”

County commissioners discussed the potential for a five-percent hotel-motel tax Monday before tabling discussions.

DeVries said Pickett County businesses are already disadvantaged due to Kentucky lodges and marinas operating with a lower sales tax.

“In Kentucky there’s a six-percent sales tax. In Tennessee, we’re at 9.75 right now and already we’re at a disadvantage because people can go or stop at Lake Cumberland, or go to the other side of the lake even and get a better deal because the rate is low,” DeVries said. “If you add an additional five percent, then it really puts a hurting on us because now we’re competing with a nine-percent difference.”

Talks of a hotel-motel tax come as county officials look for ways to increase revenue. According to estimates, Pickett County spent just over $600,000 more than it collected in taxes and other revenue during the 2018-2019 fiscal year.

DeVries said a hotel-motel tax could potentially change how marinas and lodges in Pickett County conduct business.

“We get customers that complain about the tax that they have to pay,” DeVries said. “As a business owner, I have to decide am I going to grow my business, am I going to add houseboats, am I going to upgrade cabins. I can’t spend that money knowing that my business is going to suffer because of it.”

DeVries said he has spoke with commissioners about the potential for a hotel-motel tax and how it would affect his business.

“I even had two county commissioners tell me that they knew that if they pass this hotel-motel tax it would hurt my business, it would be harder for me,” DeVries said. “and that they know it’s going to be a struggle for me. However they think it’s going to be better in the long-run, which I don’t understand how they could think that.”

A hotel-motel tax for Pickett County would need approved by state lawmakers before commissioners could implement it. State statute requires hotel-motel tax revenue go towards programs that promote tourism.