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Garrett County, Md., boosts hotel tax

Posted: May 17, 2012 9:42 AM EDT Updated: May 17, 2012 9:42 AM EDT

OAKLAND, Md. (AP) – Garrett County officials say a boost in the local hotel tax will help pay for the county’s recent acquisition of a manmade whitewater course in western Maryland.

The Cumberland Times-News (http://bit.ly/La2wIY ) reports that the county commissioners voted Tuesday to raise the hotel tax from 5% to 6%, effective July 1.

County Administrator Monty Pagenhardt says some of the new revenue will reimburse the county’s $600,000 expense for paying off loans on which the Adventure Sports Center International had defaulted.

Pagenhardt says the higher hotel tax will also fund tourism promotion and economic development.

One event the county is promoting is the 2014 world canoe and kayak slalom championships at the whitewater course near McHenry.

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Garrett commissioners approve hotel tax raise

Representative asks county for longer transition period

Elaine Blaisdell Cumberland Times-News

— OAKLAND — Garrett County commissioners unanimously approved on Tuesday a resolution to raise the Hotel Rental Accommodations Tax rate from 5 percent to 6 percent, effective July 1.

The commission also voted to discuss the implementation of the increased rate after hearing from a representative from Taylor-made Deep Creek Vacations.

The representative stressed that the company understood the need for a rate increase and asked the commission to allow for more of a transition period, explaining that updates of company software will be necessary in order to compensate for the new increase. The representative also said that the company wasn’t happy with the process of notification.

The commission followed the same procedure of notification in the summer of 2005, when the rate was increased from 4 percent to 5 percent, according to Wendy Yoder, director for the Department of Financial Services.

Because of the hardships of those rental contracts, the county decided to amend the reporting procedure in advance, according to the notification sent to county rental agencies.

“Contracts and confirmed reservations made prior to the receipt of this notification will be honored at the 5 percent tax rate,” said the email notification that the rental agencies received form the county.

“You will be required to submit taxes calculated at the new rate of 6 percent for contracts and reservations made after the receipt of this notification for all arrivals July 1, 2012, and after. What this means is that for any month whereby you are remitting the tax to the county that includes tax collected at both rates, you must remit your gross rental receipt to us broken down by the rate at which they were collected.”

For example, if a gross rental receipts in a given month is $6,000 and charged taxes at the rate of 5 percent on $2,000 and 6 percent on $4,00 then the remittance must be broken down that way, according to the notification. Hotel rental tax collected on the amount would total $340, with $100 collected on the 5 percent rate and $240 collected on the 6 percent rate.

The hotel rental tax is due to the county by the 21st of each month. If it’s not remitted by that date, penalty and interest charges will apply.

The rate increase resolution came about after the requested legislation was passed in General Assembly and was approved by Gov. Martin O’Malley, according to Chairman Jim Raley.

Contact Elaine Blaisdell at eblaisdell@times-news.com

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Buying or selling real estate in Garrett County or Deep Creek Lake, Maryland? Call Jay Ferguson of Railey Realty for all of your real estate needs! I take great pride in referrals, and I assure you, I will take great care of your friends, family & colleagues!

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Delegation to hear concerns on sheriff’s office, slots, wind power

Delegation to hear concerns on sheriff’s office, slots, wind power

Kevin Spradlin
Cumberland Times-News

(from article)

In Garrett County, emergency services, legislation to authorize an increase in the hotel/motel tax and to establish minimum setback requirements and decommissioning standards for commercial wind turbines are key issues.

Among statewide issues, local organizations are seeking state lawmakers’ support in keeping teacher pensions state-funded and to modify the collective bargaining process that currently allows the state Department of Education, instead of an independent mediator, to serve as final authority in labor disputes between teachers’ unions and the state board.

Rocky Gap State Park is one of five locations authorized to operate slots. The eastern Allegany County facility is permitted up to 1,500 machines. To date, there has been no qualified bid submitted for the site. The Allegany County commissioners asked the delegation in November to introduce a bill that would allow third parties to purchase licenses to operate some of the machines.

The Garrett County commissioners have asked the delegation to introduce a bill that would grant them the authority to increase the hotel/motel tax. It’s an issue that local businesses and property owners object to. Joyce Bishoff, interim president of the Garrett County Chamber of Commerce, indicated that an accommodations tax increase could turn people away from visiting.

The commissioners also want the authority, as their counterparts in Allegany and Kent counties do, to have public sales of homes of residents who are 60 days or more delinquent in the payment of water and sewer bills. During a November meeting, the county’s Department of Public Utilities noted property owners were more than $280,000 in arrears.

There have been a number of requests from private individuals and agencies as well.

Linda Jones of the Garrett County side of Lonaconing is asking the delegation to continue pushing for equal payments for widows deemed “wholly dependent” and “partially self-supporting” after a death in the workplace. Jones, whose husband Dale Jones was killed in April 2007 during a mining incident along with Frostburg resident Michael Wilt, praised the passage of legislation in 2009 that increased payments, but wants a level playing field.

Frostburg resident and former state senator John Bambacus has appealed to the delegation to codify Gov. Martin O’Malley’s ban of wind turbines on state land. Bambacus said the ban currently is continued only at the whim of the state’s chief elected officer.

Bambacus also wants legislation introduced to prohibit wind turbines on mountain ridges in Garrett and Allegany counties.

In correspondence with Bambacus, Delegate Wendell Beitzel said such legislative efforts might be “futile … due to the current frenzy to develop alternative energy sources and the governor’s opposition to anything that stands in the way of wind energy development.”

Beitzel also said that such legislation “could come back to haunt us” if it would prevent other possible uses that would “foster economic development, recreational infrastructure and tourism-related activities.”

If you are thinking of buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Long & Foster Real Estate for all of your real estate needs! 877-563-5350