Wednesday, Aug. 13, 2008

City officials introduce hotel tax, schedule public hearing

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Gaithersburg's mayor and council voted Aug. 4 to introduce an ordinance that would allow the city to impose a hotel rental tax.

If current hotel occupancy rates are an indicator, the tax is expected to generate approximately $1.2 million in city revenue in fiscal 2009 and $1.6 million the following year.

The hotel industry has voiced displeasure, saying that the added tax could send visitors to neighboring jurisdictions.

Review of the ordinance comes in anticipation of statewide legislation expected to be signed into law later this year. The General Assembly passed a bill in April allowing municipalities to impose up to a 2 percent additional tax on sleeping accommodations at lodgings in their jurisdiction. If the bill is signed into law on Oct. 1, Gaithersburg's mayor and council can pass an ordinance enabling the tax and approve a 2 percent tax.

The city has lobbied for this bill since the mid-1990s. Of the 22 counties statewide that charge a hotel tax, 14 share their revenues with local municipalities, but not Montgomery. The City of Gaithersburg, which has 2,128 taxable rooms and the City of Rockville, which has 1,740 rooms, are the most affected.

Hotel guests in Montgomery County cities that collect the tax would be subject to a 7 percent tax on sleeping accommodations, plus a 6 percent sales tax and the new 2 percent tax, said Kelly Groff, director of the Conference and Visitors Bureau of Montgomery County, Maryland. "That's high for a suburban market," she said.

A public hearing on the ordinance will be held at 7:30 p.m. on Aug. 18 at City Hall at 31 S. Summit Ave. in Gaithersburg.

City expands

recycling program

A newly expanded recycling contract allows more plastic items to be recycled. City residents previously could only recycle clear or colored plastic bottles with necks – such as bottles used for soft drinks, detergent, bleach, milk and juice.

Residents may now recycle narrow-neck plastic bottles that contained food, drink and household products – such as milk, juice, water, syrup, vegetable oil, salad dressing, cleaning, detergent and shampoo/conditioner bottles. Also accepted are plastic tubs (like those used for margarine or yogurt), plastic buckets, plastic flower pots and plastic beverage cups. Containers should be empty and rinsed. Labels and plastic rings around the bottle's neck are acceptable.

Any household product bottles or containers that did not contain hazardous or garden products, such as anti-freeze or pesticides, can be recycled, said Ollie Mumpower, acting head of the city's public works department. Plastic wrap and bags, or Polystyrene and Styrofoam products, are not accepted either.

For more information, visit the public works page on the city's Web site, www.gaithersburgmd.gov or call 301-258-6370.

Speed cameras

here to stay

City leaders voted Aug. 4 to use budgeted police funds to continue $985,000 in funding for speed cameras in Gaithersburg. The city has been sharing a Montgomery County contract with ACS State and Local Solutions Inc. and will continue that. Officials said that photo-speed technology has been proven to control speed in enforced zones and reduce accidents, injuries and fatalities.

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