Norwalk discusses proposed increase in lodging tax

Norwalk city council discussed increasing the lodging tax during Tuesday's work session.The lodging tax (aka bed tax), which started in 2011, currently is 4 1/2 percent, with 3 percent going to Norwalk and the rest going to the visitors bureau. Those hotels, motels and beds-and-breakfasts collecting the bed tax are: All American Inn & Suites, Best Western, Econo Lodge, Norwalk Inn and Victorian Lady. Norwalk Finance Director Michelle Reeder said Georgian Manor isn't mandated to collect the bed tax due to the number of beds it has.City administrators are proposing increasing the tax to 6 percent, which would take effect Jan. 1. In that scenario, 3.5 percent would go to the city."Erie County is the closest. They are at 5 percent," Reeder told council.If the proposed increase passes, the lodging tax would raise about $32,000 and would go directly to the general fund.Councilman Dave Wallace was concerned about blindsiding the various businesses and said it would be more fair to give them a heads-up about the possible increase."I'm happy to have a conversation with them," Norwalk Mayor Rob Duncan said. On Wednesday, the mayor attempted to contact the five businesses which would be impacted by the lodging tax."I was able to visit three, speak with one via … phone and left a message for the fifth. I have not heard back from George Ruta as of this email," Duncan said in a follow-up email to council and the Reflector."I explained the possible increase and the reasons for it. None were overjoyed as you can imagine, but understood the city's needs and agreed we need to do what is necessary to keep Norwalk a safe and pleasant place to visit for their clientele. They understand, with the exception of the Norwalk Inn, that it will not affect their bottom line, but will be passed on to those who frequent their businesses. The Norwalk Inn has an all-inclusive price which they say they will probably not raise."These decisions are never easy, but as you saw with the budget (Tuesday) evening, to continue to do nothing is not solving the problem," Duncan said.Norwalk Safety-Service Director Dan Wendt shared the total lodging tax with council for area villages, cities and townships.There are seven political subdivisions each in Richland and Lorain counties with a 6-percent total lodging tax, with 3 percent coming from the county. There are five places in Seneca County, four in Sandusky County and three in Ottawa County charging the same rate.In Erie County, Wendt said there are nine areas charging 5 percent with 2 percent coming from the county: Sandusky, Huron, Margaretta, Vermilion and Groton, Huron, Milan, Perkins and Vermilion townships."There are some cities with much higher bed taxes. Cuyahoga County is 12.5 percent. Frankin is 10 percent," Reeder said.ReederDuncanWendt