DUMFRIES — Some hotel owners are celebrating after Dumfries officials voted to lower the town’s tax on hotel rooms.
The Dumfries Town Council on June 5 voted to lower the transient occupancy tax, also known as the tax on hotel rooms. One hotel praised the council.
“Thank you for taking the time to understand the hotel business,” he said. “Although we’re still going to be two percent higher than our direct competitors in Prince William County, this will put us in a position to compete effectively.”
While Dumfries, technically, is in Prince William County it had a higher hotel tax rate. Because of that, Dumfries hotel owners maintain business travelers to Quantico would opt for cheaper rooms in the county, and in neighboring Stafford County to the south.
The council also voted to increase the threshold for the collection of the business and professional licensing tax (BPOL), a tax on gross receipts. The tax will now be collected on purchase starting at $50, up from the old $35. The change also aligns the town with more competitive BPOL tax rates in Prince William County. Stafford County does not collect BPOL.
And finally, town officials hiked the tax on cigarettes from 55 cents per pack to 75 cents. The higher tax shouldn’t stop people from buying smokes in the town.
“I can assure you Prince William County is not cheaper than the Town of Dumfries [to buy cigarettes. as a smoker I can tell you that,” said acting town Mayor Charles Brewer.
Brewer also praised recent efforts for the town to join the Northern Virginia Cigarette Tax Board. The membership means the town has been able to reap additional tax monies.
“Until Dumfries joined the Board, the state was getting your money. You weren’t getting none,” Brewer told his fellow council members.
All three changes — lower hotel and BPOL taxes, and higher cigarette taxes — all take effect July 1.
Last week, we also reported on a move that will slap those who are ticketed in the town with higher a new fee.
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