State and federal tax laws don't treat coronavirus relief payments as taxable income, but the state has instructed appraisers to treat the payments as income when calculating a business' real estate tax liability.
That contradiction played out Thursday before the Garland County Board of Equalization, the panel of appointed officials who decide property tax appeals. Parth Patel, VIPA Hospitality Management's president of development, asked the board to lower property taxes on two parcels where four of the company's hotels are located, arguing that the appraisal firm the county contracts should not have included coronavirus relief payments in its calculation of the hotels' net operating incomes.
"In reality, that's not a true cash-flow income," he told the board, explaining the relief reimbursed the company for keeping employees on the payroll when the hotels were closed last year because of public health directives limiting travel and commerce.
"The bottom line is we still lost money at the end of the year. If we didn't get (relief money), we'd be in an even worse position than we were," Patel said, "The state says you should include it, but that's just a one-time thing. We're not going to get that next year or in 2023."
He said 2020 room revenue from the Quality Inn & Suites Hot Springs, Country Inn & Suites by Radisson and La Quinta Inn & Suites by Wyndham fell by more than a third compared to 2019. The Home2Suites by Hilton's 2020 room revenue was $427,000...
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