Georgia Legislature looks at eliminating high hotel tax in Columbus

A Columbus state representative with family ties to the hospitality industry is a co-sponsor of a bill in the House that would eliminate the $5 per room hotel/motel fee charged in Georgia.

Rep. Matt Gurtler, R-Tiger, along with 15 cosponsors including Rep. John Pezold, R-Columbus, filed House Bill 364 last week that would repeal the $5 per night hotel fee that was passed with a statewide transportation bill in 2015.

Pezold, who is the son of Valley Hospitality owner Jack Pezold, said one of the reasons he signed onto the legislation is because Columbus has the highest room occupancy tax in the nation, nearly 23 percent per night.

“Georgia is the only state in the country that charges a flat dollar fee per night for a hotel room,” Pezold said on Monday. “That alone jacks the rates up.”

The Columbus per night occupancy tax is 22.99 percent, according to Smith Travel Research, a global marketplace data company for the travel industry.

The average per night hotel room in Columbus is 22.99 percent. The top four places are all held by Georgia cities, Macon is second at 22.7, Augusta third at 20.2 and Atlanta is fourth at 19.9.

“It made sense for me to sign on the bill because I have more hotel experience than any other member of the House,” Pezold said. “I think I am the only one in the House in the hotel business.”

If the bill gets out of committee and reaches a vote on the House floor, Pezold said he would likely recuse himself because of a potential conflict of interest.

Peter Bowden, president of the Columbus Convention & Visitors Bureau, said his organization has not taken “an official position” on the legislation.

“But we would like for the Legislature to reconsider, repeal or reduce that fee,” Bowden said on Monday. “We feel like it’s a burden on Georgia travelers.”

The fee adds significantly to a Columbus hotel room, which sells for $66.79 per night on average, according to Smith Travel Research. That 22.99 percent tax, which includes the $5 nightly fee, comes to $15.29 per night in state and local taxes and fees added to the room rate.

The fee was part of a 2015 transportation bill that passed in the closing days of the session. The bill was to assist the Georgia Department of Transportation in infrastructure and produce $1 billion or more a year in revenue.

Pezold was the only one of the five Columbus House members to vote against the legislation.

“Everyone I’ve talk to in our industry understands the need for the improved DOT infrastructure, but hopes the fee will be repealed, spread out to other organizations — and not shouldered by the hospitality industry — or at least reduced from it’s current $5,” Bowden said.

This story was originally published February 20, 2017 at 2:02 PM with the headline "Georgia Legislature looks at eliminating high hotel tax in Columbus."