New hotel tax generates revenue

Coffee County is beginning to generate revenue from the new 2.5% occupancy tax. Sleep Inn & Suites is located at 84 Relco Dr., Manchester.

Coffee County is beginning to generate revenue from the new 2.5% occupancy tax, also known as hotel or lodging tax.

Starting to levy fees in mid-summer, the county has now collected more than $50,000, according to Coffee County Mayor Gary Cordell.

Cordell hopes the new tax will bring about $250,000 for the county’s coffers this fiscal year. The revenues will go the general fund and be used for tourism and economic development.

“The new tax will help us grow our local economy,” Cordell said.

County Clerk Teresa McFadden is overseeing occupancy tax collections.

Coffee County voted to implement the new 2.5% hotel tax in June.

The tax is collected countywide, including in the city limits of Manchester and Tullahoma. The new lodging tax does not apply to camping at Bonnaroo Music and Arts Festival and Exit 111 Festival.

In the two cities, the $2.5 rate was added to the already existing occupancy tax rates – 6% in Manchester and 5% in Tullahoma – resulting in 8.5% for Manchester and 7.5% for Tullahoma.

In rural Coffee County, the hotel tax is applied for the first time.

There are currently no hotels in the rural part of the county, but Cordell hopes the area will see the construction of new hotels in the future.

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