Pelion set to implement a hospitality tax next year

Posted 11/22/23

Come next February, the Town of Pelion will have a hospitality tax.

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Pelion set to implement a hospitality tax next year


Come next February, the Town of Pelion will have a hospitality tax.

In September of this year, Pelion Town Council voted to implement a 2% hospitality tax, which takes effect during the second month of 2024. According to Frank Shumpert, mayor of Pelion, the money raised through the tax will go toward the town's walking trails and general upkeep of the town.

“We're just trying to find some ways to fund the things that the town needs done,” Shumpert said.

Shumpert added that the maintenance of the town's walking trails is one of the biggest expenses. He added that the town of 650 people doesn’t have a big budget and that they currently have three town employees and are trying to get a police department.

“We’re just trying to do the best we can with people's money,” He said.

The hospitality tax came shortly after council approved an annexation that is making way for Forts Ridge, a residential company set to be built by McGuinn Hybrid Homes at 241 Forts Pond Rd., in June. The development is set to bring 144 new single-family homes to the small town.

Nate Gibson, chief executive officer for McGuinn, previously told the Chronicle construction on the development will begin in late-December or early-January, with the first homes most likely going on sale in early-February. According to this timeline the homes will start being up for sale when the hospitality tax is implemented.

Shumpert previously told the Chronicle that the development, with its host of new homes to attract new families, will help increase the town's tax base. The mayor explained that the town currently has about 200 homes, which makes it hard to maintain the tax base. Having more people in town will help it provide essential services, he reasoned.

Hospitality tax was recently a hot topic in the Town of Lexington council race, with a couple candidates wanting to get rid of it. Will Allen, who won a seat, expressed strong opposition to the tax, claiming that if you want to encourage growth, you tax less.

During a Nov. 1 forum, incumbent Todd Lyle, who won re-election on Nov. 7, posited that the hospitality tax, which he said was very controversial when it was first installed in 2015, is one of the fairest taxes in the town, as it is applied uniformly to all who spend money at bars and restaurants. He added that a majority of the people who pay that tax come from outside the town.


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