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About Oregon daily emerald. (Eugene, Or.) 1920-2012 | View Entire Issue (Jan. 8, 1986)
Proposed room tax met with mixed feelings Hotel, motel owners weigh the pros and cons of tax increase By Scott McFetridge Of tftw Cnu,r*ld Eugene Mayor Brian Obie’s proposed 50-percent increase on the room tax paid by Eugene motel and note! owners met with a mixed reaction from local managers on Tuesday. Obie proposed the citywide tax, which would be used to provide nearly one third of the funds for the proposed $17.t million expansion of Mahlon Sweet Air port, during his annual state-of-the-city address Monday. The tax increase would raise the 6-percent room tax now paid by all motels and hotel owners in Lane County to 9 percent for those located in Eugene. Agnes Huang, manager of the Con tinental Motel. 390 E. Broadway, said it is unfair to tax only hotels, since many businesses would benefit from an ex panded airport. "It will especially hurt small motels like us,” Huang said, 'if we raise the room rate, nobody will stop at all. In a small town, people expect lower rent.” Because few people arriving in the area by plane stay in Eugene’s small motels, it is unfair for the room tax to provide such a large portion of the air port expansion. Huang said. And if hotels and motels must charge a higher tax. restaurants also should pay a tax to be used for the expansion of the airport, she said. Dean Bliss, general manager of the Eugene Hilton, 66 E. Sixth Ave.. said he doesn't oppose the increased room tax, but believes a smaller increase might be more appropriate, such as a 1 or t.5 per cent increase. Although the higher room tax might hurt smaller motels, the Eugene Hilton competes for conventions with other metropolitan areas that already have higher room taxes, he said. Because the Eugene Hilton never has used its lower room tax as a selling tool, a 3-percent increase would make little difference. Bliss said. "We are already a bargain at our basic rate." Bliss said. But Bliss believes the increased tax could be used as a marketing ploy by Springfield motel owners, which now pay only the 6-percent room tax. Gene Cheeder, manager of the Shilo Inn, 3350 Gateway in Springfield, said a higher Eugene tax could aid Springfield motel owners in the long run. but he believes there would be few short-term effects from the tax. If a similar tax were proposed in Springfield, Cheeder said he " . 1—riN nir pbolii r The Hilton Hotel, located downtown, is just one of the many hotels-and molds that would have to charge customers a 9-percent room fax if Brian Ohio [s prtr- i • posal is enacted. . • 1 • . o . : • v . *• -v " • " Would oppose it. • • *‘I personally think there are more equitable ways to raise revenues;" Cheeder said. Barb Bellamy, city of Eugene public . information director, said Obie has. recommended that lane (‘.ouhty and the city of Springfield consider a similartax : increase toJtuid airport expansion. .The - ' council •probably' will deal , vyith” tKe';tj»Ji : ° " . issue within the next month, and' it‘may. - •be' up to" six months before it takes* hity - / . action bp the matter, she” •aid- * "9; .. ° ° * » .. •• . .*•*» •• • ■* ’» ‘i-'< v.; - o , o ' CLASSIFIED ADS CAN BE PLACED AT ODE Offtc*. 300 EMU UO Book*tors Stamp Counter EMU Main desk PAYMENT: AH ad* most to paM tor In advance unless a billing arrangement Has been established For billing ar rsngements, please can IN Hit or stop by the Emerald Classified office. 300 EMU RATES: 17 cents per word (or the first day and 14 cents per word for con secuttvs days the ad Is run without change Ten word minimum charge is (1.70 lor the Hrsl insertion and (140 lor eon DEADLINES UME AOS: 12 noon the day before publication DISPLAY CLASSIFIED AOS: 12 noon two days before publication The Oregon Daily Emerald is publish ed Monday through Friday during the academic year (September June) and Tuesday and Thursday during summer session (June-August) ERRORS: The Oregon OaMy Emerald cannot be responsible for mors than on« day's Incorrect advertising insertion For Sift7:li Direct from Bali Cotton tackats. perfect for skiing Priced lo sell at OLD FRIENDS 118S Aldar I 10 IBM XT/AT CLONES! 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