Harford?s state senators firmly rejected the City of Aberdeen?s call for a hotel tax, calling it bad for business.
“Taxing hotels within the city limits … places hotels in Aberdeen at an unfair disadvantage. The hotels just outside the city limits would be cheaper,” wrote Sens. Nancy Jacobs, Andrew Harris and Robert Hooper in a letter to Aberdeen Mayor Fred Simmonsand the City Council.
“The further people stay from Aberdeen the less likely they are to spend money within the city limits.”
The City Council recently asked the Harford state delegation to let it impose a 2 percent to 5 percent tax on every dollar paid to the 17 hotels within city limits.
City Council President Mike Hiob has said the tax could offset a large property tax increase, but the senators said Aberdeen has not committed to lowering property taxes if the hotel tax is passed.
Hiob said a 2 percent to 3 percent hotel tax could translate into 10 to 12 cents off Aberdeen?s property tax rate.
“Jacobs has a hard time supporting a new tax when the loss of $2.5 million is seen as no big deal to the city manager,” last week?s letter said, citing City Manager Doug Miller?s statement that the rejection of the wetlands annexation and loss of payments from the developer would not seriously affect the next year?s budget revenue.
“His statements were not erroneous,” Hiob said. “We are self-sustaining right now, but we could use this hotel tax so we can lower other taxes for our citizens.”
The council plans to meet with Harford?s delegation and review the tax proposal, Hiob said.
