Motel in tax dispute with Milton-Freewater

MILTON-FREEWATER -- City officials report a local business owes them $12,744 in taxes, but Morgan Inn manager Carrie Huskinson said the city's new transient tax has cost her at least that much in business.

"We feel the tax is discriminatory. We are the only motel in town, so it has an impact upon us. Because of it, we have had to increase rates, which decreased business," Huskinson said, adding that the 7 percent tax frustrates her guests, who often expect to pay no tax in Oregon.

According to a city report, Morgan Inn management stopped paying the transient tax to the city earlier this year. The report also said the city is now considering a tax lien on the business.

The transient tax was enacted by the city council in August 2008 as a means of raising money to increase tourism, economic development and support the Chamber of Commerce.