Hotel/Motel Tax and The City of Sky Valley

Since the City of Sky Valley, to date, has not created its own development authority, Sky Valley is required by law to contribute 40% (nearly $7,000 last year) of its hotel/motel tax to the Rabun Tourism Development Authority.

As Teka Earnhardt pointed out in the Clayton Tribune, (copy attached) the City of Sky Valley is the only city in Rabun County contributing to the TDA. The fact is Sky Valley needs its own development authority, not only to retain the funds generated by its hotel/motel tax, but to develop Sky Valley into an attractive, active city and community.

Currently, Sky Valley charges 5% hotel/motel tax. By state law a city such as Sky Valley may only retain 3% of its hotel/motel tax until such time a development authority is created by the city. Once a development authority is created, cities such as Sky Valley may then retain 100% of it hotel/motel tax for the use and benefit of Sky Valley’s future development, comprehensive planning, and marketing.

A development authority is long overdue, it’s time this council take the necessary steps to create the much-needed development authority.

Chip Durpo

Sky Valley City Councilor