Local: A few taxing questions for Gary Sandberg
I’m asking Gary because he was the Peoria City Council member who moved to increase the city’s tax on hotel room rentals from the 1.5 percent called for in the Hotel, Restaurant and Amusement tax by another half percentage point to 2 percent.*
- What essential city services– such as police and fire protection or infrastructure — will this tax revenue go to support?
- Since when did a tax become acceptable because someone other than Peoria residents (in this case, the people we’re trying to lure to the city) would pay it?
- Exactly who is going to decide how this money is going to be spent? Will people from Tazewell, Woodford and other counties be deciding how to spend money collected in Peoria?
- Exactly how high can this tax go before the cost of a hotel room start scaring away conventions?
- Exactly how does a tax become less objectionable because other taxing bodies MIGHT pass along a similar burden onto their hotels?
* That’s a whopping 33 percent increase in the city’s tax on hotel room rentals.
Billy Dennis is a former reporter and editor at small daily and weekly newspapers in Illinois and Missouri. He comments on media, news and politics. He also owns and operates 
Has Gary been inside that nice, shiny new hotel across the river by Wal-mart? It has a decent sized and very attractive (so I am told) convention center attached.
It’s a whopping 50 cents per $100.00. Do you really think that’s a “burden.”
Ah … yes, THAT old argument: “It’s just a small tac increase.” Ever look at your paycheck and all the tiny little taxes they take out? They add up.
Yes, that old argument: “every little tax is bad ‘cuz it adds up.” I have looked at my paycheck, and with the exception of income tax I receive a direct although delayed benefit (FICA, Medicare). Your argument is that the HRA tax is counterproductive and/or unfair. I disagree. HRA taxes are an effective way of helping to pay for essential city services. Hotel guests use streets, sidewalks, sewers, street lights, etc. I don’t think its government tyranny to ask them to help pay at the rate of a buck or so per $100 on the hotel bill.
dd…while I’m in favor on taxing those that get the benefit and generally support the hotel tax, it should be consistent across all communities in the region – otherwise Peoria is placed at a disadvantage. Plus, the money is going to be dedicated (isn’t it) to the Convention and Visitor’s Bureau for marketing so none of it will go to pay for essential city services.
don’t forget that in addition to the hotel tax, those visitors are paying Restaurant and Amusement taxes on top of other expenditures they make in Peoria. At some point, we become too high priced for our market. While I don’t think the taxes will generally influence a convention location — it’s still a market force we have to be aware of.
Plus, many citizens have family that come to visit and spend time in hotels….
Peo Proud: I believe you ar correct about the Hotel tax being “dedicated” to the Convention and Visitor’s Bureau. I just look at it as similar to the Illinois Lottery being “dedicated” to education only. It seems that it all ends up in one big pot. How is it that Arts Partners got some HRA money – didn’t the city somehow “give” them some HRA money? As to the competitive disadvantage with other hotels and restaurants in the region, I would have thought that proximity to the Convention Center would more than make up for an extra 50 cents on the old hotel bill. Can somebody tell me why no one can run a successful restaurant or hotel within 500 feet of the Convention Center?? And don’t tell me its because of the extra 50 cents on the hotel or dinner bill.
…and No PUBLIC FUNDS WERE USED TO BUILD THE STADIUM!
Billy’s the only journalist who’s not afflicted with innumeracy. Calling it a 33% increase is exactly the right way to look at this, and for a community that’s (strangely) obsessed with tourism it makes little sense to me.
DD is on the money as well–there’s no reason to think this money HAS to go to the convention center or any other “tourist-related” activity.