2% tourism tax modifications | Information

A bill tabled in Raleigh that was originally intended to allow the County Commissioners to raise property tax rates for Haywood County and create a property tax for Bryson City has been changed to only include Maggie Valley.

The revised House Bill 412 would allow the city government to impose a room occupancy tax of up to 2% on the rental of any room, lodging, or lodging set up by a hotel, motel, inn, or tourist camp, or similar location. “

The bill goes on to say that the city should “transfer the net proceeds of property tax to the Maggie Valley Tourism Board on a quarterly basis.”

“The agency must use at least two-thirds of the funds allocated to it under this subsection to promote travel and tourism in the Maggie Valley and use the remainder for tourism-related expenses,” the report said.

Haywood County’s billing sponsor Mark Pless said Bryson City was removed from the bill because Swain County’s Rep Mike Clampitt said it wouldn’t work there.

Haywood County got withdrawn, he said, because TDA director Lynn Collins didn’t like the bill. While Collins did not want to comment on any issue of the bill, Pless delivered emails between him and Collins.

“Currently, TDA board members do not support the 2% legislation as written,” said her email to Pless, although she did not highlight any specific concerns.

Pless said he decided to include Maggie Valley in the second edition after speaking to Alderman Phillip Wight, who came to him with the idea.

“This helps us better control our own destiny,” said Wight.

How to spend

Wight was one of the few councilors at a board meeting last month that rejected the earlier version of the bill because it stipulated that the funds generated from the additional statewide tax could only be used for sports parks, a new amphitheater or a convention center .

City administrator Nathan Clark noted that such projects would likely not be possible in the city due to its topography and lack of large, flat areas.

Pless said that in addition to Maggie Valley, he spoke with the Waynesville and Canton city officials about their interest in being included in the bill.

While Wight and Clark indicated that Maggie Valley would likely form its own local TDA agency, Waynesville Town Manager Rob Hites believes the city council would dictate to the city council how to allocate the funds generated by the potential property tax.

Hites said Maggie Valley would likely use its funds to maintain and expand outdoor venues, and Canton would likely be working on capital improvement projects, but he suspected Waynesville would use it to maintain its recreation center and park.

“We are unable to create a tourist-oriented venue as our recreation center provides formal recreation for the entire county,” he said. “Seventy-eight percent of all the people who go to our recreation center or play in our leagues and enjoy walking trails come from out of town. What I suggested to Representative Pless was to draw the language so that we can use that money to fund non-Waynesville use of our recreational programs as we don’t charge a difference in rents or anything. “

Pless said he was confident the bill would pass the house. If it later passes a Senate vote, local governments can hold their own votes on implementing the new tax.

“If you decide, you can,” said Pless. “If you decide against it, you don’t have to.”

Over the years, those responsible for the district and tourism have long discussed the need for more tourist attractions in the district – for example, a children’s museum, a congress or an outdoor center.

The additional tax, as envisaged in previous years, should be part of the Haywood County’s Tourism Development Agency and be earmarked for capital projects.