A one percent restaurant tax was the main topic of discussion at this month’s tourism board meeting on May 20.
Kentucky laws that establish guidelines for a restaurant tax were discussed and the board determined that Columbia does meet the criteria as an authorized city to establish a tax.
“We are eligible. All the money would have to go through us, but it would have to be approved by the city council first and would not have to go through the county at all,” said Paige Nickel, Adair County’s executive director of tourism. “All this says is that we can do this, we can go after it, and it is legal for us to do so.”
The tourism board currently collects a three percent transient tax on hotels and short-term stay facilities, which predominately impacts visitors and tourists passing through the area. A restaurant tax, however, would impact everyone.
“I hate using the term ‘hurt’ because it wouldn’t hurt, but if we did one percent restaurant tax it would be $1 on every hundred. You’re not going to feel that,” said Nickel.
The only requirement for establishing a tax is the city council must pass an ordinance and establish a tax rate.
Under the law, a restaurant tax can be up to three percent, but the board only discussed one percent.
A restaurant tax would affect restaurants within the city limits, and it would apply to the entire bill, including alcohol sales. Nickel said other cities in the area have implemented a restaurant tax, such as Liberty.
“We could do big things with this amount of money,” said Nickel. “If this was in 2020 at one percent we would have brought in an extra $460,000, and we have a lot more restaurants now.”
Nickel wants to continue to research the potential for a tax and the process that would be required before making a formal presentation.
“I want to do a detailed and well thought out presentation as it can possibly be,” she said. “I want it to make sense for them, and I want it to make sense for us.”
Nickel asked the board if they would make a motion for her to research it more. A motion was made to do so.
In other action, the board welcomed new member, Chris Lewis. This was his first meeting with the tourism board.
They also approved to give $1500 for the Outdoorsman Expo, which brings in vendors and people from out of town.
The tourism board is also hosting the National Crappie Tournament on June 6-7.
The tourism board meets at noon on the third Tuesday of each month at the Chamber of Commerce building at 201 Burkesville St.
By Amy Pike
amy@adairvoice.com
