The question about whether Sequoyah County should assess a 4% lodging tax on those who stay at airbnbs or motels in the county will not be answered in January 2025 as was previously proposed.
At last Tuesday’s county commissioners’ meeting, it was revealed that language for the proposition has not been finalized, and that the draft of an agreement will likely miss the deadline for being included on the January ballot.
Therefore, the commissioners are now targeting the February election.
That one-month delay will actually be better financially for the county.
According to District 1 Commissioner Ray Watts, if the lodging tax were to have been on the ballot for Jan. 14, it would have been the only item for a special election, meaning the county would foot the bill for election.
Delaying the proposition until Feb. 11 means it would be on the ballot with board of education primary elections, which means the county would be financially responsible for a proportional amount of the cost for the election.
County voters defeated the lodging tax measure when it was first proposed in October 2022, in part, it is believed, because they did not fully understand that it is an “only pay if you stay” tax. As District 3 Commissioner Jim Rogers emphasized multiple times at the Nov. 4 meeting, “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 4% lodging tax would not be assessed to county taxpayers, but would only be collected from those who utilize lodging accommodations in the county — primarily in the popular Lake Tenkiller area.
“We’ve just got to make sure everybody understands it’s not going to be a permanent tax on them,” Rogers said on Nov. 4. “We’re probably one of the only counties that’s not collecting this.”
The proposed 4% lodging tax primarily affects online marketplace vacation rentals like airbnbs and Vacation Rentals by Owner (Vrbo) properties located at or near Lake Tenkiller, but would also be collected throughout the county where no municipality assesses a lodging tax, but would not be assessed in addition to any municipal lodging tax.
“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 had previously 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.
Cherokee County voters approved a lodging tax that began two years ago, an assessment that currently applies to lodging accommodations at Lake Tenkiller in Cherokee County only.
Gena McPhail, executive director for the Oklahoma Ozarks Tourism Association, formerly known as Greater Tenkiller Area Association, 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” if the tax is approved.
McPhail said on Nov. 4 that a new Holiday Inn Express is planned for the county, located just beyond the Sallisaw city limits, which would mean 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.
“It would just be county only. And you only pay if you stay,” Rogers reiterated.
“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,” McPhail further explained.
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.
McPhail said on Nov. 4 that several fishing tournaments and boating events are already scheduled for Lake Tenkiller and Kerr Lake, and emphasized that participants spend thousands of dollars while visiting the county. With a 4% lodging tax, the county would benefit from those staying in the county for tourism events.