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Hotels balk at tax that pays to build the competition

I'm actually kind of surprised that this doesn't come up more often: According to the Erie Times-News (Pa.):

A group of Erie County hoteliers filed a lawsuit Tuesday that challenges the

legality of the county's 5 percent hotel-room tax.

The hoteliers questioned the constitutionality of a tax they say they must

collect to help pay for the proposed convention center hotel.

"The existing hotels have been unfairly burdened with a tax that is being

used to fund a competing new, publicly owned and subsidized hotel," the lawsuit

said.

The rationale on the other side is, of course, that the new HQ hotel will bring in more business for everyone, that a rising tide will raise all the boats, not just the Queen Mary. Interesting...

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