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Denham Springs proposed occupancy tax sparks debate

2 months 6 days 8 hours ago Thursday, October 17 2024 Oct 17, 2024 October 17, 2024 7:15 PM October 17, 2024 in News
Source: WBRZ

DENHAM SPRINGS - On the ballot in Denham Springs is an additional occupancy tax, up to 6.75%, for hotels and motels in the city. Public safety officials said the occupancy tax is needed for competitive pay, but local hoteliers said the occupancy tax would hurt them tremendously.

The Denham Springs Fire and Police Departments said they could each see around a quarter of a million dollars heading their way if voters approve the proposed occupancy tax. The money is earmarked for salaries and benefits for employees.

"We're not trying to be millionaires, and I'm not afraid to say how much we make. We're about 17 dollars an hour to hire a beginning police officer," Denham Springs Police Department Lt. Keith Scoby said. "I'm just trying to get you close to 20 dollars an hour."

Scoby said in 2021 the fire and police departments responded to hotels and motels on nearly 1,000 occasions. Denham Springs PD said the tax would make visitors pay for the services they use.

"We saw how many times we were responding to those hotels and motels, we weren't responding to the citizens that were paying for our service... well we were... but it could have been a lengthier call time, it could be we'll get to you after we work this overdose at this hotel," Scoby said.

With a three-percent occupancy tax already on the books, Livingston Parish Tourism officials said Denham Springs could wind up with the highest occupancy tax in the state.

"We currently have 3 percent parish-wide on occupancy tax, close to ten percent... that's the highest occupancy tax in the state of Louisiana," Livingston Parish Convention and Visitors Bureau Executive Director Eric Edwards said.

The first responders said it is worth it.

"Our average hotel in the nine hotels is 70 dollars a night, that 6.75 comes out to 4 dollars and 73 cents more a night per room. I don't know about you, but for my wife, five dollars won't change her mind," Denham Springs Fire Department Assistant Chief Jerod Stevens said.

Hotel operators said a total tax load approaching 20 percent will chase travelers away, adding the new load will put Denham Springs on the same level as New Orleans. There are fears among the local hotels that with fewer travelers and less revenue, employee positions will have to be cut.

"Let's take a look at Walker which is 2 to 3 miles away. Their occupancy tax is lower, so many of our customers in Denham Springs, once they find out the bottom line is higher, next time they'll be staying in Walker or Baton Rouge," Asian American Hotel Owners Association Board Member Ricky Patel said.

The impact could be widespread.

"It will have a trickle-down effect on all the businesses. if you lose the traffic to the hotels, lose the business to Walker, Baton Rouge, there'll be loss of revenue not just to the hotels, but to the restaurants, to the shopping," Raj Patel, a local hotelier, said.

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