Commission proposes new occupancy tax to boost tourism funding in Oak Ridge

Anderson County officials are exploring the implementation of an occupancy tax aimed at boosting local revenue without burdening residents. During a recent Budget Committee meeting, discussions highlighted the potential benefits of this tax, which would primarily target visitors rather than local homeowners.

The proposed occupancy tax would apply to tourists staying in hotels and vacation rentals, providing a new funding source for infrastructure improvements and tourism development. "This is a way to find additional funds that does not impact our homeowners," emphasized one commissioner, noting that the tax could alleviate pressure on property taxes.

Currently, cities like Oak Ridge and Clinton have varying occupancy tax rates, with Oak Ridge at 5% and Clinton at 3%. The county does not charge an occupancy tax, which officials believe could create an uneven playing field. By standardizing the tax across municipalities, the county aims to enhance tourism infrastructure, benefiting both visitors and residents alike.

The law governing the occupancy tax allows funds to be used for a range of tourism-related activities, including the construction and maintenance of facilities that attract non-residents. This could lead to improved parks and signage, making the area more appealing to tourists.

As the county considers this tax, officials are also looking at how it could be structured to ensure transparency and accountability. Any revenue generated would require approval from the County Commission before being allocated, ensuring that funds are used effectively.

The discussion around the occupancy tax reflects a broader strategy to enhance local tourism while providing necessary funding for community services. As the county moves forward, the potential implementation of this tax could mark a significant shift in how Anderson County supports its infrastructure and tourism initiatives.