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Published: 5/13/2009 | Updated: 5/20/2009
By EDWARD HUSAR
Herald-Whig Staff Writer
 The city of Quincy has filed suit in Adams County Circuit Court seeking fines and penalties in excess of $156,000 from Country Inn and Suites for non-payment of hotel-motel taxes.
The case is scheduled for a first appearance at 8:30 a.m. May 28.
Click here to see the court filing.
The suit, filed Tuesday, specifically relates to $10,890.95 in hotel-motel taxes the hotel collected in May 2008 and which should have been turned over to the city treasurer by June 30, 2008.
The suit alleges those payments have never been turned in.
The City Code provides a minimum penalty of $500 per offense and $500 for each day the violation continues. The suit asks the court to assess a per diem fine of not less than $156,000 based on non-payment for at least 312 days.
City Attorney Anthony B. Cameron said the hotel has been non-compliant in its payment of hotel-motel taxes for other months in 2008 as well, but “this case relates only to May 2008 taxes due. It will be a long time before we run out of months to prosecute.”
In addition to the $156,000 in fines, the city also is requesting the court to order the hotel to pay the taxes owed for May 2008 along with interest, which totals 2 percent a month, according to the City Code.
Cameron said any taxes collected would be turned over the Quincy Civic Center Authority, the primary beneficiary of the 8 percent hotel-motel tax, which is designed to promote tourism, special events and conventions.
Any fines ordered by the court would go to the city. Cameron said it’s not clear
where any other penalties or interest ordered by the court would go.
Cameron said filing suit in Circuit Court is “one of our many remedies” to seek compliance from a hotel operator who fails to remit hotel-motel taxes.
“We will apply them all until we obtain compliance,” he said. “We owe it to all the compliant licensees to ensure there are consequences for licensees who remain non-compliant.”
Cameron said the hotel also may be required to go before Mayor John Spring for a possible license revocation hearing.
“Our hotel-tax model makes the licensee a trustee/collector for the money paid as taxes by the guest,” he said.
“Ultimately, when the licensee keeps that trust amount for itself, the city has to impose consequences. If nothing else, it’s our way of showing all the responsible licensees how much we appreciate their honesty and diligence.”
The four-story hotel at 110 N. 54th opened Nov. 2, 2006. It has 93 rooms and a 500-seat banquet facility, and cost about $8 million to build. It is owned and operated by Quincy Hotels LLC. Mike Hill is listed as the managing member.
— ehusar@whig.com/221-3378
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