The Georgia Department of Community Affairs (DCA) performance review board took no action on a majority of claims filed against Walker County and the Walker County Chamber of Commerce by Melissa and Jamie Hulsey (complainants). Walker County is responsible for the collection of the hotel/motel tax, while the Chamber, as the county’s Destination Marketing Organization (DMO), is responsible for allocating hotel/motel tax revenue.

The complainants, who are short-term vacation rental operators, sought to invalidate the county’s hotel-motel tax and unravel the economic development agreement that brought the Cloudland at McLemore Resort, a Curio Collection by Hilton hotel, to Walker County. Many of the allegations were found to lack merit and were quickly resolved with documentation prior to the hearing.

The DCA, which is charged with reviewing hotel-motel tax procedural complaints in Georgia, thoroughly reviewed the allegations brought in this case. DCA’s Performance Review Board found no unauthorized expenses were submitted and no unlawful payments have been made to the resort. The board recommended the DCA Commissioner take no action on a majority of the allegations, including the tax arrangement that reinvests hotel-motel tax dollars collected at the resort back into the facility. A final report will be issued in 30 days following a review by DCA’s Commissioner.

DCA’s Deputy Commissioner, Rusty Haygood, stated initially in the hearing that the performance review board does not make determinations regarding the legality of agreements between entities. The board did articulate the finding that more detailed bookkeeping is needed from the county’s DMO, with greater oversight by Walker County. The board requested that audit verification procedures for the resort’s use of hotel/motel tax funds be finalized and reported back to DCA by March 31, 2026. The county committed to ensuring all reimbursements tied to the resort appropriately align with the statute and regulations regarding tourism promotion and tourism product development related expenses.

The board also recommended the Chamber’s tourism committee be balanced to represent all relevant parties and businesses who benefit from tourism across the county. The committee currently consists of three short term vacation rental owners, along with representatives from tourism destinations, the chamber and local government.

“We’re pleased with the Performance Review Board’s recommendations and decision to take no action on a majority of the complainants allegations,” said Chairwoman Angie Teems, Walker County Board of Commissioners. “We’re committed to complying with the regulations and to working with our DMO. Our intent is to provide greater accountability and transparency of how hotel/motel funds are being spent to promote our community as a business and/or vacation destination.”

Walker County continues to make gains in the tourism industry. A newly released travel economic impact study from Tourism Economics found visitors spent nearly $52 million on lodging, food and beverage, recreation, retail, and transportation in Walker County last year. The 19% year over year increase helped produce 64 new jobs and $3.6 million in local and state tax revenue.

Rock City, Rocktown, Lula Lake, Petty John’s Cave, and a portion of the Chickamauga Battlefield are among some of the destinations that attract visitors to Walker County.