By Roger McKinney
rmckinney@joplinglobe.com
COLUMBUS, Kan. — A plan to increase the Cherokee County hotel and motel guest tax wouldn’t affect existing taxes in Baxter Springs and Columbus, County Counselor Kevin Cure said Monday.
A meeting with the county commissioners was attended by hotel and motel owners, chamber of commerce members, and city officials.
“I know there’s a lot of misinformation about what we’re trying to do,” said Commissioner Richard Hilderbrand. “We’re trying to find a way to be more proactive in promoting Cherokee County. In the future, new hotels will be built in Cherokee County. It’s just a matter of time.”
Hilderbrand and Cure said another goal is to ensure that there is not a large discrepancy between the guest tax rate inside towns and outside towns, so as not to put the business owners inside towns at a disadvantage.
“This proposal will restore sort of a uniform rate throughout the county,” Cure said.
The proposal
Under the proposal Cure developed, the tax rate would not change in towns where the combined city and county guest tax is now 6 percent or higher. In towns where the combined guest tax is below 6 percent, it would increase to 6 percent.
In unincorporated areas outside towns, the county rate would be 6 percent, except for existing businesses with five or fewer rooms.
The current combined town and county rate is 10 percent in Baxter Springs and 6 percent in Columbus. Galena has no city guest tax, so the county’s current 2 percent rate would increase to 6 percent under the proposal.
Amy Sanell, co-owner of Cafe on the Route and The Little Brick Inn in Baxter Springs, said the transient guest tax figures don’t include sales taxes.
Cure acknowledged that it is something that businesses are correct to be concerned about, but said the county cannot do anything to change the sales tax rate.
“We’re fighting losing business to Pittsburg, Joplin and Oklahoma,” Sanell said. “We need to see how we’re positioned with everyone else.”
Cure said of a correct tax rate, “Where that number is, I don’t know. It was really a gut feeling.”
Sanell said she agrees that discouraging business would be the wrong move.
Mel Greene, co-owner of the Maple Uncommon Hotel in Columbus, said he was unaware until Monday morning that the county wouldn’t increase the current guest tax in town. He told the commissioners that he is opposed to any increase.
The competition
Greene said the price of a $68 room at his hotel totals $77.38 after the guest tax and sales tax are added. A $69 room at the Downstream Casino Resort on Interstate 44 in Oklahoma totals $75.25, and a $75 room at the Buffalo Run Casino hotel in Miami, Okla., totals $77.25 with tax.
Greene said customers include salespeople who are calling on local businesses, visiting family members, people in town for reunions, government officials and hunters.
He said hotel guests already travel to Joplin, Mo., Pittsburg or Oklahoma for an alcoholic drink with their meals.
Sam and Frieda Lancaster, owners of Claythorne Lodge, west of Columbus, said their business also is competing with the Kansas Department of Wildlife and Parks, which is renting out cabins in the Mined Land Wildlife Area and not charging any taxes.
The commissioners said the only option the Lancasters have in that matter is talking with area legislators.
Kathy Anderson, a member of the economic development committee with the Galena Chamber of Commerce, said after the meeting that the session provided her with information.
“I think we need to assess it within our community,” Anderson said of the county proposal. “We’re a very good target for hotels and motels, and hopefully this wouldn’t deter anyone.”
Sheryl Vogel, another member of the Galena economic development committee, said she thinks Galena is poised on the brink of an economic breakthrough, and she is concerned that an additional tax could derail it.
Columbus Mayor Marie Nepple, speaking after the meeting, said the meeting was informative, and that she is pleased that the county commissioners are trying to be fair in their tax policy and support existing business. She said the meeting also dispelled rumors about large increases in the guest tax.
“To know that our current businesses aren’t going to suffer, that’s very reassuring,” Nepple said.
Hilderbrand told reporters after the meeting that he was pleased with the information the commissioners received.
“The more information you have, the better decisions you can make,” Hilderbrand said.
