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Council member William Wickens, who drafted the meals tax ordinance, said when he presented the ordinance to council that it was not legal to include the bed and breakfasts.
“I think it is,” replied town attorney Frank Reynolds.
That type of tax, Mr. Thomasson maintained, puts the burden on visitors, rather than on the townspeople.
“That is our intent,” Mayor Morehouse affirmed, “to put the burden on visitors rather than affect those in town on fixed incomes.”
“Your stated purpose,” Mr. Dickey replied, “could hurt you in the long run... The Inn has done a lot for the town; put a new fece on the town.”
Mr. Thomasson, who with his wife (council member Nan Thomasson) owns Heritage House Bed and Breakfast, agreed. “Half of the bed and breakfast business comes from The Inn.” Rather than target a 4 percent tax at restaurants, Mr. Thomasson suggested, define the ordinance more broadly to include the B & Bs, and lower the rate.
The problem, Mayor Morehouse said, is that the town is in a financial crisis. “Nothing has been done for so long, and so much needs to be done. The council is committed to retrofit the water system.”
“Would six to ten thousand dollars a year help?” Mr. Dickey Inquired.
The mayor replied that the town is looking for more like $30-40,000 a year for capital projects - primarily the water system.
Mrs. St. Clair asked about the possibility of financing the overhaul of the water system with a bond issue, or low-interest federal loans.
Mayor Morehouse replied that it would be impossible to rate a bond issue on the town’s present revenues.
“The Farmers Home Administration programs are gone,” added Treasurer Brad Fisher. days of 3 percent interest loans are gone. There is no way the town can upgrade the water system without using revenue.”
“Why not write the governor?” Mrs. St. Clair suggested.
Mrs. Thomasson said she felt the matter required more work and discussion.
Council members agreed to defer a decision on which ordinance to advertise until after a work session on Wednesday, Jan. 21, at the courthouse. At that meeting the council plans to discuss both proposals, compare possible revenue generated by each, and decide which will be advertised for a public hearing at the council’s meeting Feb. 11.
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