On February 25, 2021, Savannah City Council passed a resolution requesting the Georgia General Assembly pass legislation enabling the City of Savannah to move into a new Hotel Motel Tax Authorization Clause O.C.G.A. 48-13-51(b) which would authorize the City of Savannah to adjust the Hotel Motel Tax rate from 6% to 8%.

House Bill 718, sponsored by Rep. Edna Jackson, was unanimously approved by all members of our local delegation and received unanimous support in both the State House and Senate. HB 718 was then signed into law by Governor Kemp on Friday, May 5, 2023. With the passage of HB 718, Savannah City Council now has the authority to adjust the Hotel Motel Rate between 6%-8% by amending the 2023 Revenue Ordinance. The requested amendment to Article E. 'Hotel Motel Tax" will set the Hotel Motel Tax Rate at 8% and establish the effective collection date of September 1, 2023. If adopted, the City of Savannah will continue to work with industry leaders, hoteliers, innkeepers, and short-term rental owners over the next three months to educate them on the adjustment and corresponding collection date.

The improvement of these public assets through Hotel Motel Tax revenue means that Savannah taxpayers will not pay directly for these improvements, which allows additional investment of General Fund dollars to go to other critical services and neighborhood improvements.

A RESOLUTION OF THE MAYOR AND ALDERMEN OF THE CITY OF SAVANNAH, GEORGIA, AUTHORIZING THE CITY MANAGER TO EXECUTE HOTEL/MOTEL EXCISE TAX UNDER O.C.G.A. 48-13-51(b); TO ALL NECESSARY ACTS TO ACCOMPLISH THE INTENT OF THIS RESOLUTION; TO PROVIDE AN EFFECTIVE DATE OF THIS RESOLUTION; AND FOR OTHER PURPOSES

WHEREAS, Savannah City Council passed a resolution on February 25, 2021 requesting the Georgia General Assembly pass legislation enabling the City of Savannah to move into a new Hotel Motel Tax Authorization Clause O.C.G.A. 48-13-51(b);

WHEREAS, Savannah City Council’s requesting resolution outlined the Tourism Product Development Projects for which Hotel Motel Tax would fund as the following: $20 million redevelopment of Savannah’s waterfront; $10 million renovation of the Historic Water Works building; $10 million expansion of the Tide to Town Urban Trail Network; $17 million to create trails, sidewalks and other connections between the Historic District, westside neighborhoods and the new arena; $3.5 million for museum development; $2 million for a water access facility on Savannah’s southside; $2 million for wayfinding signage; and $1 million for West Bay Street gateway enhancements.

WHEREAS, during the 2023 State Legislative Session, the Georgia General Assembly and Governor passed legislation enabling the City of Savannah to adjust their hotel/motel tax from six percent to eight percent, subject to spending restrictions identified in O.C.G.A. 48-13-51(b); and

WHEREAS, the City of Savannah desires to adopt a Hotel Motel Tax rate of eight percent; and,

WHEREAS, all Hotel Motel Tax revenues and Tourism Development Projects must comply with the definitions and requirements of O.C.G.A. 48-13-51(b);

WHEREAS, Hotel Motel Tax revenues have grown since Savannah City Council’s passage of the February 25, 2021 requesting resolution.

NOW, THEREFORE, BE IT RESOLVED THAT the Mayor and Aldermen of the City of Savannah will prioritize Tourism Product Development Projects in the following manner:

1. Redevelopment of River Street, Savannah’s Waterfront in the amount of $30 million dollars;
2. Redevelopment of Historic Waterworks Building and to create trails, sidewalks, and other connections between the Historic District, westside neighborhoods and the Enmarket Arena in the amount of $37 million dollars;
3. Development and construction of the Tide to Town trail network in the amount of $10 million dollars; and
4. Completion of the remaining tourism product development projects within the resolution in the amount of $8.5 million dollars.

BE IT FURTHER RESOLVED; In the event of excess Hotel Motel Tax collections, The City of Savannah would allocate the excess revenue to cover additional tourism product development costs in the prioritized fashion listed above.

BE IT FURTHER RESOLVED THAT any and all resolutions, or any part thereof, in conflict with this resolution are hereby repealed. The new hotel/motel tax rate and allocations outlined in this resolution shall be effective on September 1, 2023.

ADOPTED by the Mayor and Aldermen of the City of Savannah, this the 25^th Day of May, 2023.

Approval