FRP tax: Impact on the CedarWood Inn

Public comment presented at the July 18 Henderson County Board of Commissioners meeting, from Karen Orbaugh (read it all):

Karen Orbaugh

CedarWood Inn

Owner/Operator for Eight years this September

Thank you for allowing my statement to be read without my being here. I am sole owner and operator of an 18 room Inn. Each morning I provide a continental breakfast for my guests preventing me from attending this meeting. This opportunity is greatly appreciated.

Last year I experienced a customer turning down renting several rooms for a Los Angeles, CA independent film production crew. They saw all my rooms, and were very pleased. We discussed prices, and they were pleased. They asked taxes, and were amazed at our rate (combined Occupancy, State and County Sales & Use Tax of 11.75%). They were unhappy and asked why so high as LA’s accommodations tax was 8%. They left and did not return. This is not an isolated incident but since, in this case, I received first hand knowledge of tax rates in a city such as Los Angeles, it has made me concerned when I surprisingly find out about another tax hike being considered.

Even though I regularly receive written and verbal testimonies to the quality of my Inn and the services I provide, I have experienced a steady decline in occupancy. What I am forced to do is economize, tighten my belt, spend less, support my community by employing and buying locally, and make wise decisions.