- Associated Press - Tuesday, May 26, 2015

MEMPHIS, Tenn. (AP) - A three-year audit by the city of Memphis has found that 22 percent of hotels and motels are behind a total of more than $333,000 in occupancy taxes.

Memphis Convention & Visitors Bureau President Kevin Kane said the city is probably missing out on between $750,000 and $1 million a year in “bed taxes.”

Kane said bed taxes generate roughly $4.2 million per year and are used to pay off debt and promote hospitality.

“There’s a lot of good, viable uses for that money,” Kane said.

According to the summary report submitted to the city in March, of the 143 hotels and motels audited, 31 owed taxes.

Kane said the audit highlights long-standing problems with the way Memphis educates owners of hotels and motels about the little-known 1.7 percent tax for stays of fewer than 30 days.

“It’s not that I think people are cheating,” Kane said. “I think a lot of these independent owners just don’t know.”

The Commercial Appeal reports (https://bit.ly/1FdeNtn ) the auditors recommended that the city treasurer keep a list of hotels with a history of not paying the taxes and call in auditors periodically to check their records.

___

Information from: The Commercial Appeal, https://www.commercialappeal.com

LOAD COMMENTS ()

 

Click to Read More

Click to Hide