First reading of Tourist Commission ordinance narrowly approved

Posted January 26, 2016 at 8:01 pm

Clinton County may soon have a Tourist and Convention Commission in place after action taken at the fiscal court’s regular meeting held last Thursday evening, January 21.

The court was presented the ordinance by Penny Jo Stearns, an assistant in the judge/executive’s office “amending Clinton County Fiscal Court Tourist and Convention Commission Ordinance…due to the imposition of a transient room tax at the rate of three percent in Clinton County, Kentucky.”

A Clinton County Tourist Commission was originally established in October of 2007.

The issue to approve the ordinance was first brought to the court’s attention last spring, but did not pass.

Stearns told the court last week that the tourist industry was a multi-million dollar industry and requested a motion amending the original ordinance in order to allow the tourism board to impose a lodging fee and to state a webpage advertising Albany and Clinton County, as well as advertising in papers, magazines, brochures and so forth.

Court members asked questions about how the three percent tax collected would be tracked, who would handle the funds and oversee the revenues.

Magistrate Ricky Craig, who opposed the issue last year, was again in opposition, saying regardless of everything, it was still a tax.

Most fees, or taxes, paid would be from out-of-town tourists who spend money on lodging and it was noted that a $100 per night motel with a three percent fee would only amount to $3 more, and that is a lower rate than many areas that have a transient tax in place.

The revenue collected would be overseen by the tourism board and revenues could only be used for tourism and recreation purposes only.

After a brief discussion, magistrate Hershell Key moved to approve the ordinance establishing the tourism board and setting the transient fee. The motion was seconded by magistrate Johnny Russell and passed by a 3-2 vote with magistrate Terry Buster also voting yes and magistrates Craig and Mickey Riddle voting no.

The board is currently made up of the following members: Brett Gibson, Charlotte Dick, Jim Soma, Larry Hatfield, Patrick Padron, Penny Jo Stearns and Willard Johnson.

The court will advertise a second reading which is tentatively scheduled for February 18.

The following is a portion of the actual ordinance to help readers understand the workings of a tourism commission:

“…established for the purpose of promoting recreational, tourist and convention activity in Clinton County. The Commission is governed by KRS 91A.350-91A.390 and other applicable provisions of the Kentucky Revised Statutes as they now exist and as they may hereafter be amended, and the Commission shall therefore, have all the authority, powers, duties and obligations granted by these Statutes.

The Commission shall be composed of seven members to be appointed by the County Judge/Executive: two of three or more names from a list submitted by the local city hotel and motel associations, one from a list of three or more names submitted by the local county hotel and motel association, provided that if only one local association exists, when three commissioners shall be appointed from a list of six or more names submitted by it; one commissioner from a list of three names submitted by the local restaurant association; one from a list of three or more submitted by the Chamber of Commerce; two by the County Judge/Executive. (In the absence of any organized associations, the position shall be filled by persons affiliated with similar businesses or organizations as determined by the County Judge/Executive.

“The judge shall appoint two commissioners for a term of three years; two for a term of two years and three for a term of one year. There shall be no limitations on the number of terms of which a commissioner is reappointed. Subsequent appointments shall be for three years.

“The Commission shall elect from its membership a Chairman and a Treasurer…the books of the Commission and its account is established by KRS and shall be audited as provided by KRS 65A.030.

“The commission shall annually submit to the local governing body or bodies which established it a request for funds for the operation of the commission.

“The Clinton County Fiscal Court shall include the commission in its annual budget and shall provide funds for the operation of the commission by imposing a transient room tax on the rent of every occupancy of a suite, room, or rooms, charged by all persons, companies, corporations, or other like or similar persons, groups, or organizations doing business as motor courts, motels, hotels, inns, or like or similar accommodations businesses as follows: (1). For a local governing body or bodies, other than an urban-county government, the tax rate shall not exceed three percent (3%).

“That any person, firm, company or corporation, or other like, or similar persons, groups or organizations doing business or engaged in rental or offering of the rental of suites, rooms or other transient accommodations in Clinton County, first be registered with the Clinton County Tourist and Convention Commission and be in possession of a transient tax permit.

“Any tax imposed by the Ordinance which shall remain unpaid after it becomes due, shall have added to it a penalty of ten (10%) percent, in no case shall the penalty be less than twenty-five dollars ($25.00). Any tax not paid in full after thirty (30) days shall have added a maximum of twenty percent (20%) of the tax for each 30 days or fraction thereof for failure to pay the tax by the due date.

“All monies collected by the Commission shall be maintained in an account separate and unique from all other funds and revenues collected, and shall be considered tax revenues from the purposes of KRS 68.100 and KRS 92.330.

“…the transient room taxes shall not apply to the rental or leasing of an apartment supplied by an individual or business that regularly holds itself out as exclusively providing apartments. Apartment means a room or set of rooms, in an apartment building, fitted especially with a kitchen and usually leased as a dwelling for a minimum period of 30 days or more.

“The Clinton County Tourism Commission is charged with the duty of collecting this tax. It shall have the power and it shall be its duty to make and publish such rules and regulations as may be necessary to administer and enforce the provisions of this Ordinance and to provide such printed forms as may be required for reporting, paying and receipting for all such funds and for all other requirements in the proper and efficient administration of this Order.

“Any person, firm, company or organization who shall fail, neglect or refuse to properly complete and file a return as required or any person, firm, company or organization who shall knowingly file a false or fraudulent return required by this Ordinance, or fail to pay the tax imposed herein or any portion thereof, or fails to perform under any specific provision herein, shall be subject to criminal and/or civil penalties.

“The net proceeds from the transient tax shall be used for such purposes as enumerated in KRS 91A.350-91A.390.

“The Treasurer and any other officer of the Commission writing checks, receiving and distributing funds shall be bonded by the Clinton County Fiscal Court in an amount commensurate with the largest amount of money on hand in any given month. The Commission Treasurer shall make an itemized quarterly report to Clinton County Fiscal Court showing expenses and outlays for each month.”

A copy of the full text of the Ordinance is available for public inspection in the Clinton County Judge/Executive’s office and the ordinance will only become effective upon approval of a second reading and subsequent publication.