Ballot language creates opposition to hotel/motel tax
RED OAK — In just one week, Red Oak residents will be voting on the future of the highly debated seven percent hotel/motel tax.
As stated on the Nov. 6 ballot, 50 percent of the estimated $70-80,000 in funds is dedicated to city recreation while the other half is available for any lawful purpose, a topic at the heart of many hotel/motel tax discussions.
“According to the law, that 50 percent could be used by the City Administrator for any weak spot in the budget, and hotel guests shouldn’t have to pay for that,” Randy Orme, former hotel/ motel tax committee member and Red Coach Inn general manager said.
Following the Red Oak City Council’s vote to place the tax on the Nov. 6 ballot in February, a task force, which Orme was a member of, was established to decide and make recommendations to the Council on how to distribute the funds.
One of their top priorities, however, quickly became altering the ballot language to alleviate concerns similar to Orme’s. The committee worried the resolution would discourage people from voting for the tax because of the potential future councils could spend the money on non-tourism and recreation related projects.
The committee proposed the ballot read 100 percent of funds go toward city recreation, tourism and promotion, but the Council, in a 2-2 vote, decided to leave the resolution as originally worded and disbanded the committee.
In September, the Council formed the Red Oak Tourism and Recreation Committee to receive applications and make recommendations for the distributions of funds if the tax passes. The new committee consists of City Council member Jeanice Lester; Park and Tree Board member Deb Crouse; and Citizens-at-large Rudee DeMarce, Angie Britten and Mark Benda.
In the new committee’s bylaws, it is stated the other 50 percent of funds is “Dedicated to promote and enhance the Red Oak Community and Community Events — use of funds to be prioritized based upon the positive effect toward increasing attendance, participation and tourism resulting from the creation of or enhancement to community events, conferences, conventions, etc.”
According to Orme, though, it’s the way the law is worded that worries him, not what the committee plans to do.
“Things change,” he said. “New mayors, new councils, new hotel managers can come in, and hopefully they will continue to do what they promised. In five, 10 years, though, who knows?”
In response to concerns like Orme’s, Jeanice Lester said passing this tax would be a win-win for Red Oak because it is still money that wasn’t there before.
Lester, who is a Councilmember and chair of the new committee, said since she is a city-appointed official, she can only promote the passage of the tax as an individual, something she has willingly been doing.
“The Council did listen to the old committee’s goals,” Lester said regarding the application process and new committee’s goals. “This money will be used to enhance Red Oak, but if the council isn’t doing what you like, don’t vote for them.”
Red Oak Mayor Bill Billings echoed Lester, saying this tax would be in the hands of the committee and the community.
“The application is left open for the purpose of the community,” he said. “There is opportunity for everyone. The power lies with the people. No group is more important than another so if we all work together on this, everyone could benefit.”
Billings said he wants to turn over a new leaf in the community, and this tax will be the vehicle to allow more events and entertainment to come to town at a free or reduced price. He mentioned the tax could fund more entertainment for Junction Days or more accommodations and activities during Old Car Days.
“This [tax] was brought up by the decision-making body of the community and put on the ballot for one reason,” Billings said. “We saw it as a benefit for the citizens of Red Oak.”