A one-month
postponement to mid-February has been granted in a trial, which could decide
whether the Regional Transit Authority will collect a one percent sales tax
from local hotels and motels. The delay was requested by the city attorney,
who said more time was needed to study the “implications for uncollected
taxes” in the three years prior to filing the RTA’s lawsuit. The transit
agency believes a tax exemption granted to hotels and motels is illegal and
went to court last summer to back up its claim. A judge agreed but the
hospitality industry appealed, setting the stage for the current battle. If
the RTA is successful, an estimated $6 million in annual revenue would be
generated to fund the city’s 20 percent share of construction costs on the
proposed $153 million Canal Street car line as well as other capital projects.
