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Clarksville reports first months of hotel-motel tax collections, outlines auditing and TDA role
Summary
City staff reported roughly $219,000 collected through mid-April under the new hotel-motel tax, detailed required audits and reporting, and summarized the newly formed tourism development authority’s purpose and activity.
Clarksville staff on May 1 provided the council with a first compliance report on the city’s hotel-motel tax and the tourism development authority established to manage portions of the revenue.
Lori Mata, who delivered the update, said the hotel-motel tax ordinance was passed May 2, 2024 and took effect Jan. 1, 2025. The city created an authority in February 2024 — described in the presentation as the tourism development authority or ACT (arts, culture and tourism) authority — to administer funds for arts, heritage and a planned performing arts center. “This entity is somewhat independent,” Mata said, adding that board members are appointed by council and that assets revert to the city if the authority ceases operations.
Mata reported the city’s first collections: $99,000 for January, $99,000 for February and about $21,000 through mid-April, reflecting room-rental tax receipts remitted to the city. City staff told the council there are 47 hotels within city limits; 35 had reported consistently and 12 had not responded to reporting requests. Mata said annual audits of every hotel are required by statute and that staff will begin those audits within about a month, noting she is working with the city attorney on enforcement for nonresponsive hotels.
The city’s tax-collection and reporting responsibilities, Mata said, include monthly remittance deadlines (by the 20th of the month for taxable rentals), annual audits, and written fiscal-year reporting to state and legislative offices. Mata said a portion of the tax revenue is legally committed to the tourism development authority and must be used for tourism-related purposes; that funding cannot be diverted to non-tourism expenses.
Council members asked no policy questions on the floor during the presentation; Streetman closed the report and the council moved on to committee items.
