The loophole has been closed!

Sent: Wednesday, July 01, 2009 9:31 AM

To: Rosenberg, Stan (SEN)
Subject: Campus Center Hotel to pay local hotel/motel tax?????

Hey Stan,

A fellow Amherst Blogger and Town Meeting member is reporting that in the current budget the loophole for the Campus Center Hotel has been closed:

SECTION 50. The first paragraph of section 2 of chapter 64G of the General Laws, as so appearing, is hereby amended by striking out clause (b) and inserting in place thereof the following clause:- (b) lodging accommodations, including dormitories, at religious, charitable, educational and philanthropic institutions; provided, however, that this exemption shall not apply to accommodations provided by any such institution at a hotel or motel operated by the institution.

Any truth to this???

Larry K
(See ya at the Parade!)

-----Original Message-----
From: Rosenberg, Stan (SEN) <Stan.Rosenberg@state.ma.us>
To: amherstac@aol.com
Sent: Wed, Jul 1, 2009 9:52 am
Subject: RE: Campus Center Hotel to pay local hotel/motel tax?????

Yes, I put this in my amendment to expand the local option hotel motel tax. I have been pressing the university quietly for more than a decade without result so as a matter of fairness I included the language in my amendment. The Governor signed it as part of the budget. It goes into effect on August 1 resulting in revenue both the the state and the Town.

stan

To: Stan.Rosenberg@state.ma.us
Sent: Wed, Jul 1, 2009 9:58 am
Subject: Re: Campus Center Hotel to pay local hotel/motel tax?????

Hey Stan,

Thanks! I think it will make a significant difference to the town in these very trying times!

Larry

Close the loophole!

Since the state--after blindsiding local cities and towns with a mid-year retroactive Local Aid cut of sizable proportions--is now talking about local option meals taxes, and increases in the hotel/motel tax to raise additional millions to soften next Fiscal year's even more devastating Local Aid cuts, could we finally do what ‘Special Committee to Recommend Mitigation for Local Aid Cuts’, chaired by Amherst resident State Senator Stan Rosenberg (an indefatigable Umass supporter) clearly stated W-A-Y back in 2003:

“Eliminate UMASS Amherst Campus Center's exemption from hotel motel tax (that tax doesn't cost the state anything, doesn't cost the university anything, shouldn't be an edge in competition against local hotels / motels). This could be a significant ($70,000+) help to Amherst.”

And those were of course 2003 dollars at the old tax rate. So if the increase does go into effect and factoring in inflation this could easily provide Amherst with an addition $100-K annually.

If the Campus Center Hotel, after a $9.2 million renovation (at taxpayer expense) wants to compete with private sector, taxpaying operations in the Valley (mostly run by Amherst native Curt Shumway) let them compete on a level playing field.

A billion here and a billion there...

Joint Meeting Town Hall 6:30-ish
So State Senator Stan Rosenberg was his usual articulate well-dressed self, but he was somber—and I do mean somber. Even if Question 1 fails to eviscerate 40% of the state’s revenues he said things are still going to be dire.

When 'His Lordship' Gerry Weiss made a brief introduction and joked about his entertaining /humorous presentation coming up, Stan responded their was nothing funny about the position we are in.

After his presentation he took questions from twenty committee folks sitting in front of him as well as the audience seated behind him. I of course asked Stan about the local lodging tax and how a committee he chaired suggested Umass start paying it (six years ago they projected it would generate $70,000 annually to the town.)

I also mentioned the level playing field argument that every other hotel/motel in town pays it, including The Lord Jeff Inn owned by tax-exempt Amherst College, so why should the Campus Center Hotel have an unfair advantage.

Stan said the University does not like to be put on a slippery slope of having its tax-exempt protective status pierced, but the issue does come up every few years and most certainly would again.

Well let’s hope it is before the Grand Reopening of the Campus Center Hotel after the $10 million renovation.