CTAS Says Halfway Houses Not Subject to Hotel/Motel Taxes

February 27, 2019
By: Dwayne Page

Can the county assess a hotel/motel tax on local halfway houses?

Seventh district county commissioner Bruce Malone raised the question during Monday night’s regular monthly meeting of the commission.

Malone had already brought this matter to the attention of County Mayor Tim Stribling who sought an opinion from Ben Rodgers of the UT County Technical Assistance (CTAS).

Under a private act authorized by the state legislature, the county commission can levy a privilege tax upon the privilege of occupancy in any hotel of each transient in the amount of five percent (5%) of the consideration charged by the operator. Such tax is a privilege tax upon the transient occupying such room and is to be collected as provided in this act.

“Hotel” means any structure or space, or any portion thereof, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist camp, tourist court, tourist cabin, motel or any place in which rooms, lodgings or accommodations are furnished to transients for a consideration.

“Transient” means any person who exercises occupancy or is entitled to occupancy for any rooms, lodgings or accommodations in a hotel for a period of less than thirty (30) continuous days.

“If a person stays there less than 30 continuous days, it would appear that the halfway house might be subject to hotel/motel tax.  However, unlike a “hotel, inn, tourist camp, tourist court, tourist cabin, [or] motel,” a halfway house is not open to the public, and although it is not expressly stated in the private act, the implication is that the taxable rooms are open to the public.  We think a halfway house might be considered more in the nature of a hospital than a hotel, and while we have found no caselaw in Tennessee on the subject I did find one in Iowa where the court determined that the hotel/motel tax did not apply to hospital sleeping rooms,” wrote Rodgers in response to County Mayor Stribling.

“We have found no caselaw or attorney general opinions on this in Tennessee. While I cannot say with certainty, it is my opinion that a court would not extend the application of the tax to a halfway house,” added Rodgers.

County attorney Hilton Conger said the residents of the halfway houses, typically ordered by the court to be there, usually stay for longer than 30 days at a time.

Malone said since treatment services offered are not under the same roof as the halfway houses here and since residents can be ejected for rules violations at any time, he felt the halfway houses might be considered lodging homes and perhaps subject to the tax.

February 26, 2019
By: Dwayne Page

The Smithville Municipal Golf Course is still available for lease.

The city has advertised in recent weeks seeking proposals from potential tenants and while a few initially expressed interest no one has stepped forward with a bid.

During a special called meeting Tuesday evening at city hall, the aldermen voted at the mayor’s suggestion to advertise for another two weeks but to expand the search for a new golf course tenant beyond Smithville to larger cities including McMinnville, Lebanon, Cookeville, and Murfreesboro hoping to attract some attention.

The city has also changed the terms in that the new golf course tenant will not be required to double as manager of the city swimming pool. That provision, city officials say may have kept some from submitting a proposal.

Meanwhile, the city is advertising to hire a manager of the pool. The job will be a part time seasonal position at 40 hours a week. Pay will be subject to experience. The city is also taking applications to fill life guard positions at the pool for this summer.

Plans are in the making to repair the pool which is leaking badly. During Tuesday night’s meeting, the aldermen accepted two bids from D&J Restoration LLLP of Cadiz, Kentucky including one in the amount of $7,360 to repair leaks and expansion joints and the other for $7,000 to make gutter area tile repairs and caulking.

In other business, the aldermen voted to spend up to $16,000 for labor and materials to build a new 36 x 60 metal shed at the golf course to replace an older storm damaged shed on the property. The city will tear down the old shed and hire someone to build the new one which will be larger to house more equipment. Funds to pay for the project will come from the city’s $24,500 insurance claim for the damage.

The aldermen also voted to enter into an agreement with the Fiddlers Jamboree Committee to lease the city parking lot across from city hall during the weekend of the Jamboree for the next five years at $2,500 per year.

February 26, 2019
By: Dwayne Page

The DCHS Quarterback Club is sponsoring the annual ham breakfast to benefit the high school football program Saturday, March 2 at the County Complex from 6:00 a.m. until 10:00 a.m. The menu includes country ham, biscuits, eggs, gravy, hash browns, coffee, and orange juice. The cost is $7.00 per plate. Tickets available from any Tiger football player or DCHS Quarterback Club member. Tickets will also be available at the door. All proceeds will go to the DCHS Tiger Football Program.

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