JACKSON COUNTY - Jerry Goforth opened the doors of the Barton House Bed and Breakfast in Carbondale almost three years ago. Now, a proposed lodging tax in Jackson County could lead to the business' closure.

"It's not a threat or anything," he said. "It's just not worth it."

The proposal would charge customers a 4 percent tax at any Jackson County lodging facilities, such as bed and breakfasts and cabins, outside the city limits of Carbondale or Murphysboro. State law allows municipalities to create their own lodging tax, which Carbondale and Murphysboro do.

Debbie Moore, executive director of the Carbondale Convention and Tourism Bureau, and Sam Goldman, president of the bureau's board of directors, proposed starting this kind of tax to the Jackson County Board's finance committee in April. They said the tax would generate about $43,000 per year.

The Illinois Department of Revenue reported that total revenue from lodging in Jackson County was about $7.14 million in 2005. Of this money, about $6.07 million was collected in Carbondale and Murphysboro. If the proposed tax had been in place at that time, the remaining funds of about $1.8 million would be taxed at 4 percent, accumulating about $43,000.

The money generated from the tax would be distributed equally between the bureau and the Murphysboro Tourism Board for tourism purposes.

Murphysboro Tourism Board chairman Mike Jones said the city has been talking about fundraising efforts such as the proposed tax for years. Estimated income would double tourism funds in the city.

County Board Chairman John Evans said a majority of board members are in favor of the tax and that the motion to have the state's attorney's office draft an ordinance passed the finance committee unanimously at its April 19 meeting.

"Our budget the way it is right now, we can't give money to tourism and economic development," Evans said. This new tax would be a way for the county to aid in local tourism efforts.

Benefiting the cities

If Carbondale and Murphysboro each received about $20,000 from the collected taxes, the impact would be different on each city.

Carbondale currently operates with a large tourism budget, receiving $50,000 in state grants and much of the $300,000 the city collects in lodging taxes. The money would help, but it would not have a large impact, Goldman said.

Murphysboro, on the other hand, would be helped tremendously by the money, Jones said. The city currently only collects lodging tax on two motels.

"Murphysboro has few tourism funds, so that limits what we can do," Jones said.

Current lodging rates are 8 percent in Carbondale and 4 percent in Murphysboro. These city rates would remain the same if the proposed county tax passes. City jurisdiction on lodging taxes supersedes county taxes.

Tourism funds in Murphysboro are used for improvements to the General John A. Logan Civil War Museum, the Shawnee Hills Wine Trail and promotional efforts for areas such as Kinkaid Lake, among other things, Jones said.

By improving and promoting these areas, the cities are also generating additional income in other areas such as sales tax, Goldman said. Tourists to the area spend money on gas, food and souvenirs while visiting town.

"The issue is not taxation," he said. "The issue is economic development."

Merida Johns, vice president of Illinois Bed and Breakfast Association, said guests at a bed and breakfast typically spend between $100 and $200 elsewhere during their visit.

Robert Bordenave, president of the Illinois Bed and Breakfast Association, looks at the tax as having positive benefits to the community.

"I believe it's up to the county, and if they believe it's a good source of income, they have to do it," he said.

Potential harm

Some Jackson County bed and breakfast owners are opposed to the proposed tax and those owners say it would hurt their business.

Goforth said that with the tax and the paperwork associated with it, he would close down the Barton House.

He started the business with his wife Linda to make a little bit of money and to promote Southern Illinois, he said. Last year, he made $6,000 in gross income and has yet to make a profit in three years.

The reason people visit bed and breakfasts is because they want an experience that is different than staying at a hotel, he said. They also like to get away from the expensive prices and high taxes of the city.

With the 4 percent proposed tax, plus the 6 percent lodging tax paid to the state, tax amounts would reach double digits, which Goforth said would deter customers.

"People are going to say, 'Hey, this is like Chicago,'" he said. "They won't even recognize the regular rate after seeing all the taxes."

Johns also said adding county taxes to the state assessments could deter clients from staying there. Having a total 10 percent tax on a $90 room would result in a $99 overall charge, for example.

"That makes me less competitive with the hotel that's charging $60," she said.

Goldman believes that the additional cost will not deter customers from the business.

"What makes them unique is what attracts people, not whether or not they can save a few dollars," he said about bed and breakfasts versus hotels.

Not so unusual

Many people involved in debate about the proposal do not believe the tax will affect business because it's a common thing.

The proposed tax would be similar to taxes on hotels and motels in cities, which are found everywhere, Jones said.

"Everywhere I travel, I pay a tax. Do I think about it? No, it's just there," he said, adding that motels have never had to close because of taxes.

Bordenave owns Oak Ridge Manor, a bed and breakfast in Williamson County. The county currently has a 5 percent lodging tax in place, which Bordenave said, to his knowledge, has never caused a business to close.

"No one likes taxes," he said. "I don't. But I don't see it as a limiting factor for businesses.

Moore said the proposed tax would create a more level playing field for businesses in Murphysboro, Carbondale and the outlying parts of the county.

Goldman said understanding that the tax is the responsibility of guests at the lodging facilities and not of county residents is important.

"It's really very critical to know we're not taking any tax dollars out of county taxpayers," he said.

Where it goes from here

The lodging tax ordinance is being drafted by the state's attorney's office. The ordinance will detail plans for collection and distribution of the tax funds.

Evans hopes the ordinance will be prepared in time for the next finance committee meeting at 4:30 p.m. on June 11 at the Jackson County Courthouse in Murphysboro.

Goforth received a phone call from Finance Committee Chair Gerald Compton inviting him to the next committee meeting to hear his thoughts. He is calling the owners of all the affected businesses, Goforth said.

If the ordinance passes the finance committee, it will likely be voted on at the next county board meeting, which will be held at 7 p.m. on June 13 at the courthouse.

adam.testa@the southern.com / 351-5031