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About Cannon Beach gazette. (Cannon Beach, Or.) 1977-current | View Entire Issue (Dec. 30, 2016)
6A • December 30, 2016 | Cannon Beach Gazette | cannonbeachgazette.com Hotels question city’s take on room tax BUSINESS DIRECTORY City now requires room taxes to include all ‘nonoptional fees’ Cannon Beach Gazette Cannon Beach Hotels and vacation rentals are concerned about Cannon Beach’s inter- pretation of the lodging tax. In September, lodging op- erators received a letter from the city that required lodging tax collection to include “non- optional fees.” These could include booking, late check- out, extended stay, pet, extra guests, cleaning, hot tub and cancellation fees. Representatives from local hotels and vacation rental com- panies say this interpretation conflicts with the municipal code. Lodging industry mem- bers from 16 local businesses — including Hallmark Resort, Stephanie Inn, Ocean Lodge, Tolovana Inn and Surfsand Resort — have asked the city to vet the new requirements through a public process. The Jan. 3 City Council meeting will address the lodg- ing companies’ concerns. After auditing 10 lodging operators, the city found that some hotels did not collect tax on certain fees subject to the tax, Finance Director Laurie Sawrey wrote in the Septem- ber letter. The city interprets “gross room rent” to include any fee that is mandatory, not refundable and paid in order to occupy the room, which is con- sistent with the Oregon Depart- ment of Revenue definition. “We are using the state’s definition for consistency and because we think it’s the right thing to do,” Sawrey said in December. The customer would pay more in taxes under the city’s interpretation of “gross room rent.” “The amounts quantified by a recent audit are not sig- nificant, but still an amount that the city should be collect- ing based on our definition of gross rent,” Sawrey said. Representatives from lo- cal hotels and vacation rental businesses met in November to discuss the city’s definition of “gross room rent.” None agreed with the city. “In our opinion the proto- col for amending the munici- pal code must include a public process and direction from the City Council,” states the letter to City Council from lodg- ing industry members. “We respectfully ask that the city participate in appropriate dia- logue with the Cannon Beach lodging industry to discuss el- ements of the code and work to clarify mutual expectations.” “In other Oregon munici- palities where we are involved in business — specifically The Dalles, Beaverton, Seaside and our relationships in Portland — guests are taxed on room reve- nue only,” Escape Lodging Co. president Patrick Nofield said in December. Nofield said the room tax in Cannon Beach has only applied to room revenue until now, and lodging industry members are “concerned with the way the B oB M c E wan c onstruction , inc . E xcavation • u ndErground u tiitiEs r oad w ork • F ill M atErial s itE P rEParation • r ock owned and operated by 503-738-3569 SUBMITTED PHOTO Owners of the Lighthouse Inn and other Cannon Beach ho- tels seek to clarify the city’s room tax. city implemented a change without vetting it through an appropriate process.” Escape Lodging reviewed the municipal code chapter re- garding the room tax and found the definition of “rent” to be “the gross rent, exclusive of other services,” Nofield said. In an October letter re- sponding to Escape Lodging’s concerns, Sawrey said the city’s code requirements for what is included in gross rents has not changed and the September let- ter was “a reminder and clari- fication” of code requirements. “We maintain that the city has the legal authority to en- force all of the conditions and requirements outlined in the letter,” Sawrey wrote. Linda Sweeney, owner of Cannon Beach Vacation Rent- als, said the city’s interpretation of gross room tax could affect her business. She said there was a lack of public discussion about the interpretation, but she hopes that discussion with the City Council “will clarify and correct this misadventure.” “The local lodging industry was blindsided with the recent interpretation of the lodging tax collection,” Sweeney said in an email. “We work hard to accomplish the highest quality product at the most stressful time of year. The small prof- it that results must carry us through the remainder of the year. The city’s unreasonable behavior, unfair tactics and greediness hurts not only my business but will also reflect on other small businesses in Can- non Beach as our guests are being priced out of our market. They will look elsewhere to spend their vacation dollars.” The September letter to Cannon Beach lodging opera- tors also required lodging tax collection returns to include a copy of the state lodging tax quarterly return. Hotel guests pay an 8 per- cent city tax and 1.8 percent state tax to the hotel. The hotel forwards to the city 95 percent of the tax paid by the custom- er and keeps 5 percent of the amount, Sawrey said. 34154 Hwy 26, Seaside, OR P.O. Box 2845, Gearhart, OR S erving the p aCifiC n orthweSt S inCe 1956 • CC48302 M INI -S TORAGE SPACE AVAILABLE CANNON BEACH MINI-STORAGE Units Available 5’ x 10’ • 10’ x 10’ Contact Shawna at 503-436-2235 C ONSTRUCTION “Helping shape the character of Cannon Beach since 1973” Residential • Commercial • Remodeling New Construction • Storm Damage Repair Full Service Custom Cabinet Shop 503.436.2235 www.coasterconstruction.com • CCB# 150126 H EATING & C OOLING Expert Service, Repairs & Installation Departing councilors honored at work session Councilors from Page 1A Steidel said he valued Cad- wallader’s work as the Clatsop County local government rep- resentative for the Cape Fal- con Marine Reserve. He also praised Higgins for her com- munication with hotels during the effort to increase room tax- es. Cadwallader and Higgins received pieces from Icefire Glassworks as a departing gift from the city. Councilors, staff and residents enjoyed cake and refreshments after the meeting. Higgins and Cadwallader, both elected in 2008, helped draft and approve the city’s first strategic plan that outlines goals for the next five years. Both councilors served during the city’s acquisition of 805 acres in the Ecola Creek watershed from the Oregon Department of Forestry, fol- lowing the 2010 voter approval of a $4 million bond measure. The acquisition created 1,040 connected acres of city-owned forest in the Ecola Creek Forest Reserve. In the past eight years, the City Council has also started the Tourism and Arts Commis- sion and approved room tax increases. Cadwallader, who served as council president and coun- cil liaison for the affordable housing task force, is looking forward to spending time with family in California. “I feel really positive about the team, my fellow council- ors, the staff, our city,” Cad- wallader said in April. “Being a councilor has been a kick. I have found it a lot of fun.” After many years of living on the North Coast and work- ing as the Ocean Lodge general manager, Higgins has relocated to the Tri-Cities, Washington, area to open another hotel for Escape Lodging company. “I feel like with the council that we have, we’re leaving it better and stronger than we found it,” she said in April. Residential & Commercial Gas, Oil & Electric Furnaces Ductless Systems • Fireplaces Water Heaters • Heat Pumps & AC Licensed & Bonded Commercial Refrigeration Locally Owned & Operated Cannon Beach, Oregon 503-440-6975 coastheating@gmail.com L ANDSCAPING GARDENER arcadia organic landscaping & design Seaside Rotary sponsors Shop with a Cop Shop from Page 1A At breakfast provided by the Seaside Pig ’N Pancake, the children and officers got to know each other and learned about each other’s lives. Cast- erline said the event would not have happened without com- munity support. “We’re grateful for Pig ’N Pancake because that made it so much more comfortable for the children. Fred Meyer made a wonderful donation to make this program happen and offered discounts,” Cast- erline said. “Police officers bought kids items out of their own pockets and are really trying to bridge the gap. It made me so proud of the cal- iber of the police officers in our community. They are just extraordinary.” Schermerhorn thanked the Seaside Rotary, Fred Meyer and staff, and Pig ’N Pancake owner Wayne Pool and staff. “It was great to see all the smiles and hear the laughter,” Schermerhorn said. “The of- ficers had just as much fun as the children and enjoyed test- ing out some of the toys and skateboards.” Next year, the Rotary Club hopes to double the number of participating officers and chil- dren. Police chief gets Silver Beaver award Cannon Beach Police Chief Jason Schermerhorn is a 2017 recipient of the Boy Scouts of America Silver Beaver Award. The award, created in 1931, is the council-level distinguished service award that recognizes “registered Scouters of excep- tional character,” according to the Boy Scouts of America. Upon nomination by their lo- cal Scout council and with the SERVING LUNCH & DINNER OPEN AT 11:30 approval of the National Court of Honor, award recipients are adult leaders who have made an impact on the lives of youth through service given to the council. “The Silver Beaver is an award given to those who implement the Scouting pro- gram and perform community service through hard work, self sacrifice, dedication, and many years of service,” ac- cording to the youth develop- ment organization. 503.440.1491 arcadialandscaping@hotmail.com lcb 9071 P AINTING Randy Anderson Licensed • Bonded • Insured CCB# 89453 36 Years Experience Anderson Painting SUBMITTED PHOTO Officer James Jordan tries on a Santa costume for “Shop With a Cop.” (503) 738-9989 • Cell (503) 440-2411 • Fax (503) 738-9337 PO Box 140 Seaside, Oregon 97138 www.andersonpainting.biz “Custom Finishing” ROBERT CAIN LD, 45 Years of Experience TWO LOCATIONS SEASIDE & HILLSBORO 740 Ave H • Ste 2 • Seaside 232 NE Lincoln • Ste B • Hillsboro FREE CONSULTATION • Dentures for all ages, New, Partials and Custom Dentures • Dentures for implants • Relines & Repairs • Denture repairs done same day! • Personal service and attention to detail Open Wednesday and Friday • 9-4:30 • 503-738-7710 powered by Tuesday’s Open at 4pm L ANDSCAPING Laurelwood Compost • Mulch • Planting MacMix Soil Amendments YARD DEBRIS DROP-OFF (no Scotch Broom) 503-717-1454 34154 HIGHWAY 26 SEASIDE, OR Laurelwood Farm A DVERTISING TO PLACE YOUR AD HERE! Seaside Office: 503-738-5561 Astoria Office: 503-325-3211 Delightful Beer Garden • Ocean View Deck Pool Tables • Darts Full Bar ( including Bill’s Tavern brews ) but that’s not all... Smoked Pork Ribs • Steak • Seafood and much, much more! Located in SOUTH Cannon Beach 3301 S. Hemlock St. • Tolovana Park 503.436.1130 • Minors Welcome M ike and C eline M C e wan CCB#199205 By Lyra Fontaine C ONSTRUCTION music fi rst BUSINESS DIRECTORY
