Joe Adgie / The Newnan Times-Herald
Cowetans whose homes were destroyed by the tornado (or some other cause such as a fire) or are uninhabitable are exempt from paying the 8 percent hotel-motel tax – but many who pay for stays knew it until recently Not.
Local groups that pay to house tornado victims claim that some hotel and motel operators failed to follow state and local guidelines on tax exemptions following a disaster.
An 8 percent hotel motel tax is levied on hotel stays in Coweta County and the city of Newnan – however, local ordinances and state laws provide exemptions for hotel stays related to property destroyed in a disaster.
Local hotel operators were reminded of the exemption by district and city officials a few weeks ago, and some have been cooperative not to collect taxes or to refund taxes already collected.
Others were less manageable, according to local nonprofits paying large numbers of hotel rooms for those hit by the March 26 tornado.
In addition to disaster relief, local hotel motel taxes and the US $ 5 per night state fee cannot be levied on “Extended Stays” longer than 30 nights.
The tax is levied in the first 30 nights, but cannot be calculated from 31 nights. The 30-night provision remains in place even if you move to another room in the same hotel.
According to the Georgia Department of Revenue regulations, consecutive stays in different rooms add up to the 30-day extended stay “regardless of whether the right to occupy the room is granted under separate, consecutive contracts” for as long as the customer has the days of the consecutive occupancy are not interrupted.
Local nonprofits have received reports of hotels where customers are checking out and then checking back in to avoid becoming an extended stay.
For the disaster exemption, the language of the local ordinance states: “The tax levied under this article does not apply to: Fees for rooms, accommodation or accommodation made available to persons who certify that they are in such rooms, accommodation or accommodation as a result of the destruction of their home or residence by fire or other accidents. ”
To get the exemption, the person occupying the hotel room must certify that their home has been destroyed, said Cleatus Phillips, Newnan’s city manager.
“I think most people weren’t aware of this and didn’t submit certification,” he said. Although the ordinance says “Destroyed”, Phillips believes any home that has received a “red card” listing the property as unsafe is eligible.
However, if individuals who should be exempt from the tax have paid the tax, it is the hotel’s responsibility to reimburse it, Phillips said.
“The individuals should apply to the hotels and that application should include certification,” he said. The hotel can then issue the tax refund and adjust the tax transfer for the following month to show the credit for the refund.
“Our hotels were notified of this refund process a few weeks ago,” said Phillips. “If anyone has a problem with this process, they should notify us immediately.”
The City Administrator’s Office can be contacted at 770-254-2358 or cphillips@cityofnewnan.org.
Coweta County posted a letter to the 10 hotels in the unincorporated county on June 1, according to County Administrator Michael Fouts.
The letter reads, “We were made aware that some of the hotels in Coweta County continue to impose hotel-motel excise tax on those individuals affected by this declared disaster,” and lists the county ordinance language for the exemption on .
“Coweta County hereby urges all hotels to comply with this ordinance providing hotel-motel excise tax exemption for these affected individuals under the ordinance code,” writes Fouts.
Hotel operators should contact Fouts at mfouts@coweta.ga.us or 770-254-2601 if they have any questions.