Nacogdoches hotel tax revenue remains stable despite suspension, - KTRE.com | Lufkin and Nacogdoches, Texas

Nacogdoches hotel tax revenue remains stable despite suspension, rebate

Nacogdoches City Manager says a concern that needs addressing is that The Hotel Fredonia is displacing people who may have stayed in other hotels. (Source: KTRE Staff) Nacogdoches City Manager says a concern that needs addressing is that The Hotel Fredonia is displacing people who may have stayed in other hotels. (Source: KTRE Staff)
The Fredonia Hotel general manager John McLaren says the hotel's newness is creating a demand, but overflow and future conventions will place heads in beds for all hotels. (Source: KTRe Staff) The Fredonia Hotel general manager John McLaren says the hotel's newness is creating a demand, but overflow and future conventions will place heads in beds for all hotels. (Source: KTRe Staff)
Temporary suspended taxes for Hurricane Harvey guests occurred for two months. Fredonia Hotel tax rebates will occur for 10 years. (Source: KTRE Staff) Temporary suspended taxes for Hurricane Harvey guests occurred for two months. Fredonia Hotel tax rebates will occur for 10 years. (Source: KTRE Staff)
NACOGDOCHES, TX (KTRE) -

A new hotel and a hurricane could have had a “make or break” effect on the hotel occupancy tax revenue in Nacogdoches. 

A healthy balance remains despite a governor-ordered tax suspension and an economic development tax rebate.

Every hotel guest in Texas is charged a 6 percent hotel occupancy tax. In Nacogdoches, add a 7 percent city tax. A tax exemption came between Aug. 23 and Oct 23 when Texas Governor Greg Abbott suspended the taxes for Hurricane Harvey victims and relief personnel.

“It was the right thing to do,” said Jim Jeffers, Nacogdoches’ city manager.

The 10 years of tax rebates to The Fredonia Hotel have a bigger impact. The city presented the incentive knowing it was the only affordable way for the investor to open the destination site. Still, city leaders must look at the consequences. 

"What the hotel is doing, and it's a concern that needs to be addressed, is that the hotel is displacing people who may have stayed in some of the other hotels and now they're staying in the Fredonia,” Jeffers said.

"The Fredonia being here has helped create a little bit of demand because it's the new shiny toy,” said John McLaren, the general manager of The Hotel Fredonia.

McLaren said he is confident conventions and business meetings will create enough visitors to fill hotels citywide.   

"We're working with the CVB to bring in meeting planners to this community to experience Nacogdoches, so they can go back to their clients and be well spoken about the experience they had in Nacogdoches,” McLaren said.

The CVB receives 72 percent of the city's hotel occupancy tax. A new director comes on board in mid-December. The person knows the order. Place heads in beds.

Since The Fredonia Hotel opened in June it has been reimbursed over $29,000 in hotel occupancy tax. Other hotels in that same period contributed just under $262,000 in revenue, a few thousand dollars more than the previous year. 

October figures are not yet available.

Copyright 2017 KTRE. All rights reserved.

  • East Texas NewsMore>>

  • Community rallying behind Lufkin all-stars

    Community rallying behind Lufkin all-stars

    Sunday, August 19 2018 8:23 PM EDT2018-08-20 00:23:07 GMT
    Photo: KTREPhoto: KTRE

    Making history, once again, fans, friends and family members of the Lufkin Little League Junior League team cheered behind the all stars on Sunday at Buffalo Wild Wings.

    More >>

    Making history, once again, fans, friends and family members of the Lufkin Little League Junior League team cheered behind the all stars on Sunday at Buffalo Wild Wings.

    More >>
  • Chinese Taipei squeaks by Lufkin 2-0 in JLWS

    Chinese Taipei squeaks by Lufkin 2-0 in JLWS

    Sunday, August 19 2018 2:18 PM EDT2018-08-19 18:18:34 GMT
    JLWSJLWS

    The All-Stars from the Pineywoods battled Chinese Taipei less than 24 hours after beating California in the U.S. Championship game. Chinese Taipei entered the game after run-ruling Mexico in the International Championship. In the first inning of the heavyweight showdown both teams got a runner on base but both teams left the runner stranded. Lufkin's Christian Mum...

    More >>

    The All-Stars from the Pineywoods battled Chinese Taipei less than 24 hours after beating California in the U.S. Championship game. Chinese Taipei entered the game after run-ruling Mexico in the International Championship. In the first inning of the heavyweight showdown both teams got a runner on base but both teams left the runner stranded. Lufkin's Christian Mum...

    More >>
  • Lufkin Wins! All-Stars beat California 5-2 to advance to World Championship at JLWS

    Lufkin Wins! All-Stars beat California 5-2 to advance to World Championship at JLWS

    Saturday, August 18 2018 8:49 PM EDT2018-08-19 00:49:38 GMT

    Lufkin was hoping to bring home a second straight U.S. Championship with Little League baseball, this time at the Junior League World Series. The U.S. Championship was a rematch of a game a few days earlier against California. The first game saw Lufkin win 2-0 on a complete game shutout by Mark Requena. Lufkin would end up being the away team in the title game. It didn't take long for the scoring to start for Lufkin with clean up hitter Sam Flores got the scoring started early for L...

    More >>

    Lufkin was hoping to bring home a second straight U.S. Championship with Little League baseball, this time at the Junior League World Series. The U.S. Championship was a rematch of a game a few days earlier against California. The first game saw Lufkin win 2-0 on a complete game shutout by Mark Requena. Lufkin would end up being the away team in the title game. It didn't take long for the scoring to start for Lufkin with clean up hitter Sam Flores got the scoring started early for L...

    More >>
Powered by Frankly