LOVELOCK - As of July 1, a new city room tax ordinance will mean higher costs for long-term motel room and RV park renters in Lovelock by eliminating the "28-day rule" that exempted them from a room tax.
City council members unanimously approved the repeal and adoption of the room tax ordinance. There was little discussion or public comment on the tax change at last week's meeting.
In 1999, the city code was amended to include an exception for long-term renters of "transient lodging":
"There is no tax on the rental of transient lodging accommodations if the rental is for a period of twenty-eight (28) consecutive days or more."
That exception will be eliminated in the new ordinance. The city code defines transient or tourist lodging to include any hotel, motel, recreational vehicle park, rooming house, tourist resort, etc. The tax rate remains unchanged at 12 percent of room rental fees.
Mayor Michael Giles called it a "pass through" tax, meaning the cost is passed on to all motel and hotel customers. Hotel and motel owners collect the tax and, until the ordinance change, it was then collected by the Pershing County Tourism Authority Board.
The new ordinance transfers responsibility for room tax collection to the city of Lovelock.
The tourism board will continue distributing the room tax revenues to the city, county, chamber of commerce and to local groups to support and promote local events and tourism, said board chairman Drew Skeen.
As general manager of the Sturgeons Casino-Restaurant-Inn, Skeen said he supports the new ordinance from the point of view of the tourism board and his hotel business.
"I was in favor of it from the start," Skeen said. "It's nice to have the extra funds to grow events in the community."
Skeen explained that some local groups depend on room taxes to run their events. Events bring people to town and that in turn helps the business community, he added.
"A lot of the events in this town don't have the money every year to start up or continue their events," he said. "It's proven very good for room-based business. It's in our best interest to continue having funds to support that."
Ending the 28-day exemption on room taxes will eliminate confusion over who should pay the room tax and should not, Skeen said. Transient workers, including construction crews, who pay for a month in advance but then come and go will be required to pay the room tax.
"Now everybody will pay it, straight across the board," he explained. "There will no confusion and it's fair to everyone."
Skeen named some of the groups and events that have benefited from room taxes including the Lovers Aloft Balloon Festival, Frontier Days and the Lovelock Speedway. Some of the money goes for smaller school and political events.
"The goal is to put on quality events in a small town that doesn't have a lot of money," Skeen said.
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