How does this tax increase compare with the Consumer Price Index and Travel Price Index?
For the year 2000, the Consumer Price Index for Urban Consumers increased 3.4% over 1999, while the Travel Price Index increased 6.1%, as determined by the U.S. Bureau of Labor Statistics and the Travel Industry Association of America, respectively. For the year-to-date in 2001, the CPI is up 3.3% and the TPI is up 2.4%. The TPI for lodging shows an increase of 4.7% in 2000, and an increase of 2.2% thus far in 2001. Currently, visitors who utilize accommodations in Grand Traverse County pay a 2% room assessment on their lodging rental bills. This assessment would be replaced by the 5% PA 263 room tax. This 150% increase in the lodging tax rate will result in an additional 2.8% increase in total lodging costs. Will the new tax rate allow the city to remain price-competitive with other cities in the region? Traverse City has the highest hotel room rates among the cities surveyed, with in-season rates averaging $136.00 per day. If Traverse City raises its tax rate to the maximum extent al
