UPDATE: Hotel operators oppose Mahoning County bed tax hike
YOUNGSTOWN, Ohio - The Mahoning Valley Lodging Association says a proposed hike in the county bed tax would not be business friendly.
The association warns that the negative impact will hurt more than just their business.
At a Tuesday news conference, hotel operators said the proposed tax hike from 3% to 5% would raise the total tax to 14 3/4%, and be one of highest rates in state.
The association doesn't believe that the two commissioners who support the tax hike understand the dollars that will lost.
"As we start losing room nights, then you're going to start losing income coming in from those room nights, the bed tax coming in, sales tax, then it's going to impact the restaurants, it's going to impact the shopping in the area," said Mike Naffah of Naffah Hospitality.
David Kovass of The Hampton Inn West says a higher tax could nullify important group sales that the hotel has already negotiated with 30 groups.
"Now if this tax is increased we have to go back to these 30 groups, motor coaches and tour busses and tell them that they're going to be paying an extra 2% per room when they have 50 to 100 people," Kovass said.
The lodging association says it represents 125-million dollars in annual payroll and the higher tax could ultimately cost workers jobs and income.
"If we have less rooms, we send housekeepers home. So they do lose hours," said Michele Janci, Sales Manager at Hampton West.
Commissioner Carol Romedio Rhegetti, who supports the tax hike, says it would give the Convention and Visitors Bureau an additional 1/2 percent and 1-1/2 percent would go to the port authority or airport. It would also eliminate a 100-thousand dollar annual payment from the county's general fund to the airport.
Rhegetti says complete details on the tax will be revealed at a meeting on Wednesday when it could be approved. Commissioner Anthony Trafficanti is opposed to the higher tax.