🎯 STRisker: Bulletin - Townsend, TN
Townsend Proposes 3% Tax on Overnight Stays
Tourism Dollars on the Table: Townsend Eyes Lodging Tax
In Townsend, leaders are asking a big question: should visitors pay a little extra to stay the night? A proposed 3% lodging tax is on the table, aimed at capturing revenue from hotels, motels, and short-term rentals like cabins.
City Manager Gayla Webb said the city has long been missing out. Townsend currently tops the state in lodging sales without such a tax, leaving potentially half a million dollars a year on the table. Under state law, the revenue would need to circle back into tourism-related projects—things like reopening Special People’s Park and fixing river access points that keep visitors coming back.
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Local businesses are cautiously optimistic. Scott Shelton, who manages the TallyHo Inn, said he sees the value in reinvesting in the community but worries about guests’ wallets. With travel costs already climbing, he notes that a 3% lodging hike could scare away budget-conscious visitors. “For some people,” Shelton explained, “it could be a make or break deal.”
Still, Shelton isn’t dismissing the idea outright. He’d just like to see leaders do their homework with a formal impact study before moving forward.
The ordinance faces its second reading and public hearing on September 16 at 7 p.m., where locals and business owners can weigh in. If approved, Townsend would join other Tennessee cities that already use lodging taxes as a tool for funding tourism.
The real question: will a small price increase for visitors translate into a long-term win for the city? Townsend’s decision next month could set the tone for how it balances tourism growth with affordability.
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