Diana Simon
Lake Santeetlah – Thanks to a unanimous vote, one local municipality has reinstated a 3 percent occupancy tax.
The Town of Lake Santeetlah council voted at its Feb. 13 meeting to reinstate the collection, which was bumped in a 3-2 vote just two years prior to its resurrection on Feb. 10, 2022.
The town began the Feb. 13 gathering with a public hearing concerning the matter, which sparked public comments from several residents that covered the spectrum of positives and negatives the tax provides.
First instituted following a 3-2 council vote Sept. 19, 2017, the occupancy tax was put in place as a hopeful attempt to increase cash flow for the town. Established in 1989, Lake Santeetlah currently has no commercial industry, so the funds from the tax would come strictly from homeowners who rent their homes out via Airbnb or VRBO (Vacation Rentals by Owner) – which could provide a shot in the arm for the town’s income.
Resident Roger Carlton spoke during the Feb. 13 public comment session and pointed out that concerns voiced about the tax decreasing the likelihood of someone renting a property; the rate of 3 percent was not in line with surrounding areas; and the tax would require the town to launch a separate audit – which would cost more than the monies profited by the tax – were all “debunked” once the tax went into effect.
“It seems very hard for me to find an argument not to do this, when all the other jurisdictions in Graham County do it,” Carlton said.
Lake Santeetlah divides the profits from the tax between administration (30 percent) and tourism advertising (60 percent). Resident Alan Davidson provided one of two opposing views against the tax after Carlton, citing that advertising the town as a destination would increase traffic inside the tiny lakefront community.
“This is a magnificently beautiful part of the country,” Davidson said. “You’re going to undermine some of the marketable aspects of the real estate of the town. We’ll lose the serenity and tranquility that we all love and cherish.”
Council members then weighed in.
“In my opinion, the town is a place for family to enjoy outdoor activities and the beauty of the area,” Keith Predmore said. “That is what appeals to people and why they come to rent. Everybody pays occupancy tax in those areas that have it and it benefits the area.”
Kevin Haag then addressed some of Davidson’s comments regarding the peace and tranquility of the community, pointing out that was one of his main draws to relocate to Lake Santeetlah.
“Having said that, I think Alan actually identified perhaps some of the issues that we have no control over,” Haag said. “If a motorcycle club comes driving through here, we have no way to enforce that. There’s nothing that we can do to control that whatsoever.
“There have been issues in the past that renters cause noise, take too much parking and other issues, and those are of concern. That’s the reason we have town zoning.”
The previous council eliminated the collection of the tax in a controversial vote.
Tina Emerson, Connie Gross and Ralph Mitchell were on the panel at the time; member Jim Hager and Mayor Diana Simon were the only two who won re-election in 2023.
When questioned, Simon told the council Feb. 13 that would be no retroactive collection of the occupancy tax. The council also voted unanimously in favor of an ordinance to automatically renew the collection resolution on an annual basis.
Collection will begin April 1.