If Sequoyah County voters didn’t like the idea of a countywide lodging tax when it was first proposed in October 2022, chances are the past two years may not have changed their mind.
But District 3 County Commissioner Jim Rogers is hoping that, given enough assurances that a 4% lodging tax will not be assessed to county residents, that such a lodging tax is only collected from those who stay at airbnbs or motels in the county where no municipality already assesses a lodging tax, that county residents will approve the “only pay if you stay” tax this time around.
That’s why at last Monday’s weekly meeting of the county commissioners when the lodging tax was discussed for 18 minutes, Rogers emphasized on seven separate occasions — and in seven different versions — that “it’s not a new tax on anybody, it’s only people coming from outside the area staying the night in our county.”
In other words, the meager 4% lodging tax would not be assessed to county taxpayers, that it would only be collected from those who utilize lodging accommodations in the county — you only pay if you use it.
“We’ve just got to make sure everybody understands it’s not going to be a permanent tax on them,” Rogers said on several occasions. “We’re probably one of the only counties that’s not collecting this.”
The proposal to place the question about collecting a 4% lodging tax on the January 2025 ballot, which primarily affects online marketplace vacation rentals like airbnbs and Vacation Rentals by Owner (Vrbo) properties located at or near Lake Tenkiller, was unanimously approved by the commissioners. The commissioners must now draft an agreement and appropriate language for the proposition, which is expected to be approved at their next meeting to then be forwarded to the election board for placing on the ballot.
“This is not a decision that your board makes. It’s a decision that the citizens of the county would make. All we can do is make the decision to put it on the ballot, then the citizens make the decision if they want to run with that or not,” Rogers said.
He noted that town hall meetings would need to be conducted in an effort to educate taxpayers, and it was suggested that education campaigns be conducted for city, county and civic organizations.
How it started
“This is something we talked about several months ago,” Rogers explained in addressing the agenda item. “Cherokee County implemented a lodging tax two years ago. Basically, half the Lake Tenkiller area, [Cherokee County is] charging a lodging tax. Our half we’re not.”
Gena McPhail, executive director for the Greater Tenkiller Area Association (GTAA), said Cherokee County’s lodging tax generated $236,000 in 2023, after collecting $135,000 in its initial year in 2022.
“The tax divides Lake Tenkiller in half,” she said, noting that Burnt Cabin is the current dividing line, “and we’re assuming that Sequoyah County’s going to have a similar increase.”
McPhail said a new Holiday Inn Express is planned for the county, located just beyond the Sallisaw city limits, so it will not be subject to the city’s current 5% lodging tax, but would be part of the county’s proposed 4% lodging tax.
“We’re losing 200 rooms a night right now in Sallisaw, because they’re needing more hotels,” McPhail said. “So that hotel would help with the lodging tax as well.”
McPhail was previously director of tourism for Tour Tahlequah and Explore Cherokee County, positions from which she orchestrated significant advancements in local tourism initiatives. She played a pivotal role in advocating for Cherokee County’s tax, driving increased tourism figures and economic contributions throughout the region.
Her vision for GTAA emphasizes comprehensive marketing efforts aimed at showcasing the area’s diverse attractions and natural resources.
Rogers also emphasized that any lodging tax Sequoyah County residents might approve isn’t collected in addition to what Sallisaw collects. “It would just be county only. And you only pay if you stay.”
In reiterating that Sequoyah County is one of the few Oklahoma counties without a lodging tax, Rogers pointed to revenue benefits on which the county is missing out.
“If you go to Broken Bow, you’re going to pay a lodging tax. If you stay in a hotel in Sallisaw, you’re going to pay a lodging tax,” he said, again stipulating that with a county lodging tax in place, it is not added to the 5% tax the city collects. It was also noted that the lodging tax for Branson, Mo., is 13%, which is expected to soon be increased, and the lodging tax in Roswell, N.M., is 15%.
“I want everyone to understand, this would not be a permanent tax on the folks that live here. It’s only if you go and rent an airbnb. If you rent a motel room right here [in the city] for the night, you’re going to pay that 5% lodge tax. If you go into Cherokee County and you rent a motel room or airbnb, you’re going to pay that lodging tax. It’s only collected when you utilize those [services],” Rogers made clear.
McPhail then tried to simplify how the lodging tax works.
“One of the ways it’s kind of simplified is, if you rent a bed, you pay the lodging tax. If you bring your bed, you don’t, unless you were using an RV spot or something. It’s only for airbnbs, Vrbo’s and hotels,” she explained.
Using tax receipts
Should county voters approve the proposition to assess the 4% lodging tax, then county commissioners would need to determine where those tax receipts are spent.
Rogers noted that Sallisaw’s 5% lodging tax is earmarked for the city’s sports complex and children’s activities. He would like for funds raised from the county lodging tax to benefit the county.
“We can determine the percentages that would go to tourism, we can determine the percentages that would go to where we felt like it would best benefit the county,” Rogers said.
While 40% of the lodging tax receipts is expected to go toward tourism, the commissioners would determine how the remaining 60% would be utilized. Rogers and his fellow commissioners — Ray Watts in District 1 and Beau Burlison in District 2 — agreed that the county fairgrounds, which currently has no guaranteed funding, would be a good choice to receive the tax windfall.
“That benefits every child across Sequoyah County with livestock shows, the different events they put on out there,” Rogers said of the fairgrounds. “My concern is that we have a guaranteed funding source where it would benefit our county as a whole. That provides a service for everybody in the county, especially our children that are involved in FFA and 4-H and different functions.”
He pointed out that spending of the funds by the fair board would still have to be approved by the county commissioners, ensuring the money is spent as intended.
Rogers again issued his caveat that the lodging tax would not be a burden to county constituents.
And McPhail followed suit: “It’s only for the people who are visiting the area. Anytime you stay in most places, you are paying a lodging tax — we’re just taking a 4% lodging tax.”
McPhail said the intent is to match Cherokee County’s tax, which it uses 25% for beautification. She added that funds collected from most lodging taxes go to the city or to tourism.
Looking to the future If county voters approve implementing a lodging tax, McPhail said a portion of the tax revenue would be used for marketing both Sequoyah County and Cherokee County, which should be a big benefit, especially with big-name tourism events scheduled for the area.
“There’s huge advantages to balancing out the entire area for marketing.,” she said.
McPhail revealed that among the events coming to the area is the Bassmaster Elite tournament, which draws as many as 15,000 spectators.
“Those people come and stay the entire week,” she said. “We also have Bassmaster junior and high school tournaments coming next year. In 2026, we have Bassmaster junior and high school coming for Kerr Lake. We also have the Bassmaster kayakers coming. Those are huge.
“We had a Colorado Bass Nation qualifier tournament this year, and they only had 35 people that came for that, but they averaged right around $42,000 that they spent in the county for that week,” McPhail said.
“We have so many beautiful places here, around the area. It’s going to be probably even more of a destination, especially with more trails, more biking trails that we are working on and coming down from northwest Arkansas. There’s just a lot of possibilities for the county.”
Rogers then stressed the tie-in between tourism and the proposed lodging tax.
“It’s mainly people that’s coming from outside of our area that’s going to be paying this lodging tax, unless you want to take the wife to Tenkiller for a weekend,” he said, also noting that when family reunions are held at lake properties or multiple hotel rooms are rented, “we’re not benefitting from it” without a lodging tax.
“It’s not an added tax on any of our constituents, unless you want to stay at one of the airbnbs. The 5% we have here in the city, it’s not an added tax to any of our constituents unless you stay a night in a hotel. You’re not going to pay that unless you stay.”
McPhail echoed Rogers’ explanation.
“It’s not burdening anyone else other than — and ‘burdening’ isn’t even the word that is accurate — the people that live here. It’s not affecting them.”
