Ashland City officials have established a hotel-motel room tax of 2.5 percent, though that rate is only half of what they wanted.
They had asked state lawmakers for authorization to implement a 5 percent tax on rooms. The legislature allowed half that, and the Town Council at September’s meeting unanimously approved the lower figure.
Mayor Steve Allen and council member Tim Adkins said the town will likely seek authorization to double the 2.5 percent rate when the legislature reconvenes in January.
Allen and Adkins said Pleasant View and Kingston Springs have 5 percent taxes on hotel and motel rooms.
For the Ashland City tax, there were no revenue estimates discussed by town officials, Adkins said. He said the money from the tax will go to promote tourism.
A 75-room Hampton by Hilton hotel, part of the chain formerly branded as Hampton Inn, is slated to open in Ashland City next year in the 1600 block of Highway 12.
A Hampton by Hilton is also being built in Pleasant View at the intersection of highways 49 and 41A. That property is expected to have 93 rooms.
Mayor Perry Keenan has said that the new hotel in Pleasant View is expected to generate $115,000 for town coffers annually.