(FOX 56) — The next time you go out to eat in Monticello, you may notice a higher bill than usual on your receipt. That’s because the city has implemented a new tourist tax.
Now, some locals are worried about how the extra cost may impact the community.
Monticello may be a small town of just 6,000 people, but nearby Lake Cumberland and the city’s restaurant scene draw in several out-of-towners.
“We’re here three or four times a week,” said Ryan Stone, a frequent visitor.
Stone said Black Stallion Steakhouse on North Main Street is a fan favorite for his family, but now it costs extra to eat out in Monticello.
The city recently enacted a 3% tourist tax on restaurants. This is in addition to existing sales and alcohol taxes. Even so, Stone said forking out the extra cash is worth it.
“It’s a small price to pay, but it definitely puts a lot of money back into the community. So, I’m in favor for it,” he said.
Mayor Kenny Catron said surrounding areas see millions of visitors each year, and the city has missed out on capitalizing on the heavy tourism for far too long.
“The one thing people don’t understand is that Lake Cumberland brings four million visitors,” he said. “You get 2.5 million visitors to Big South Fort Daniel Boone Forest. There are another two million visitors to Dale Hollow. That’s 8.5 million visitors to our area. We don’t really even get 1% of that in the city of Monticello.”
He said the tourist tax will generate about $500,000 a year for Monticello. The city hopes to use the money to revitalize the community and offer more family fun events.
Catron said the first project on the list is transforming the A.J. Lloyd building—an abandoned school—into a multipurpose event space.
“Where you can go see concerts, plays, also have the synthetic skating rinks in the wintertime where people can go skating,” the mayor explained.
He said the city will also remodel the building behind it for a cybersecurity company, which could bring in 200 new jobs.
Some residents said while they appreciate the idea behind this, they worry many people will not be able to afford the extra tax, noting several live in poverty.
“Even if it’s only $0.50 or $0.60, these people are living on Social Security disability,” said Sandra Zawalick. “Some of the houses you can just drive around Monticello, and you can see the bad shape that things are in. I think it’s very difficult for people.”
Catron said the tourist tax is a voluntary way to pay for progress.
“This way, if you don’t eat out, you don’t pay it,” he summarized.