Commissioners approve new 4% tourism tax resolution for Oak Ridge funding

The Anderson County Budget Committee meeting on April 10, 2025, focused on a proposed increase in the county's tourism tax, which aims to generate additional revenue for infrastructure improvements. The committee discussed the potential adjustment of the tax rate from the current 5% to a new 4% cap, which would standardize the tax across all cities in the county.

Commissioner Mark Gazelle raised questions about the optimal tax rate, suggesting that a figure around 10% is generally acceptable and does not deter travelers. The committee acknowledged the need to reassure local businesses, particularly the Chamber of Commerce, that their existing 10% tax would remain unaffected by any changes.

A motion was made to prepare a resolution for the upcoming full commission meeting on April 21, which would formalize the proposed tax adjustment. The committee emphasized the importance of timely action, as they face a May 1 deadline for implementation.

Discussion also touched on the collection methods for the tax, which rely partly on an honor system. Some members expressed concerns about compliance and the need for better tracking of tax submissions, especially from platforms like VRBO that automatically collect taxes.

The committee highlighted the potential revenue increase, estimating that the new tax structure could bring in over $1.1 million, which would be allocated for infrastructure projects. The motion to advance the proposal was approved unanimously, signaling strong support for the initiative among committee members.

As the committee prepares for the full commission meeting, further analysis of the tax's impact on both the county and municipalities will be provided to ensure informed decision-making.