Residents of Hot Sulphur Springs had two questions about potential taxes on their ballot this Nov. 5 election. Preliminary results, as of 10 p.m. Tuesday, indicate that Ballot Issue 2C, a town lodging tax, is narrowly passing by 10 votes. Ballot Issue 2B, construction use tax, failed.

Construction use tax

Residents of Hot Sulphur Springs voted to deny a 4% tax for storing and using construction materials. This tax would have impacted building contractors. Early results show 331 (80.93%) residents voted against the tax, with 78 (19.07%) in favor of the tax.

According to Hot Sulphur Springs Town Clerk Katie LaDrig, the ballot issue was created as a way to fund municipal services. If the tax had been instituted, it would have funded water and sewer infrastructure, as well as road improvements.

The ballot question included a submitted statement against the tax that said it would have placed an unfair burden on a small number of people, and it was unreasonable to seek additional revenue in the form of a construction use tax when costs have already risen significantly over recent years. No statement submitted for the tax was submitted.

Lodging Tax

The ballot issue asked for a 3% lodging tax, paid only by overnight visitors — for example, those staying at Hot Springs Resort.

As of Tuesday evening, the ballot issue is passing with 169 (50.75%) residents voting for the tax, with 164 (49.25%) against the tax. The new tax, beginning January 2025, will fund projects and services addressing visitors impacts, as well as any other municipal purpose. This includes water, sewer, infrastructure and roads.

The ballot question included a submitted statement in favor of the tax: “Travelers visiting our community have come to expect these added-on expenses associated with their travel plans — and there is no impact to the citizens of our Town as a result of voting ‘Yes’ for passage of this Initiative.”

This article will be updated as final elections results are certified.