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Presnell Still Not On Board With Haywood Tax Hike
Publisher's note: The author of this post is Barry Smith, who is an associate editor for the Carolina Journal, John Hood Publisher.
RALEIGH - Haywood County commissioners and area municipal officials are hoping a proposed 50-percent increase in the region's occupancy tax will help them build capital projects and spur area tourism. But they face opposition from one of the region's legislators, and that could scotch the tax hike.
Sen. Jim Davis, R-Macon, who represents Haywood County, has filed a bill that would authorize the Haywood County commissioners to levy an occupancy tax of 2 percent, in addition to the 4 percent already in place. Rep. Joe Sam Queen, D-Haywood, has filed a similar bill in the House.
Rep. Michele Presnell, R-Yancey, who represents a portion of Haywood County, is the only member of the county's legislative delegation standing in the way of the bill. She said there are no "set-in-stone kind of plans" to use the money raised by the additional tax revenue.
As currently written, Senate Bill 318 would require proceeds from the tax to be used for "tourism-related capital projects." Legislative fiscal analysts estimate that the proposed new tax would bring in between $541,537 and $632,816 a year.
Supporters of the tax increase do not dispute Presnell's conclusion. "There's no specific plans; it's for product development," said Mark Clasby, Haywood County economic development director. "The purpose is to be able to raise funds to put into capital projects that would be used to bring tourism to Haywood County."
Haywood County Commission Chairman Mark Swanger said the money would be used for projects that would attract tourists to the county "and put more heads in beds." He said he didn't want to prejudge what an appointed committee might choose to do with the money.
Swanger did say some projects had been discussed, including a skating rink in Maggie Valley, lighting for community ball fields in Canton, and a regional sports complex with baseball or soccer fields. Boosters of the tax have suggested that building new or improving existing sports facilities could attract tournaments to the region.
Occupancy taxes are widespread in North Carolina. They're levied in 89 North Carolina counties, either by municipalities or the counties themselves. In some jurisdictions, visitors pay taxes imposed by both the municipality and the county.
The occupancy tax rate varies from 1 percent in Brunswick County to 8 percent in Mecklenburg County. Nine other localities in Brunswick County have occupancy taxes. The Mecklenburg County rate includes a 2 percent occupancy tax that goes to the NASCAR Hall of Fame.
Occupancy taxes are levied against hotel, motel, and inn room rentals, as well as tourist campgrounds. Visitors pay occupancy taxes in addition to local and state sales taxes. Local governments must get specific permission from the General Assembly to impose an occupancy tax.
Revenues from occupancy taxes generally are used for tourism promotion or development. In some coastal counties, revenues are used to haul sand to the beaches.
The proposed increase in Haywood County troubles Martha Tracy, who has two rental houses in the Fines Creek area of Clyde.
"They're planning to put up a sports complex, I think, in Maggie [Valley]," Tracy said. "They think that's really going to bring in the money. It's really business for Maggie, but not anybody else."
Tracy said she's already had to lower her rental rates because there's an oversupply of rental property in the area. She said people in the area haven't been able to sell their houses because of the sluggish economy, so they're renting them out to tourists.
"It's a dismal picture for property owners, for landowners," Tracy said, adding that if the new tax is approved, she'll likely have to lower her rates to compensate for the added tax burden.
Dale Walksler, who owns the Wheels Through Time Museum in Maggie Valley, said the area's tourism officials shouldn't get the additional tax revenue because they're not using the more than $900,000 a year they collect from the current 4 percent occupancy tax.
"Really, all they're trying to do is milk the cash cow," Walksler said.
The Wheels Through Time Museum features more than 300 classic and historic motorcycles.
Walksler is critical of the county's tourism website - visitncsmokies.com - and calls it "the master brainchild of a $950,000 budget on tourism."
The bill, as written, does not conform to uniform occupancy tax guidelines set out by a subcommittee of the House Finance Committee that reviews all occupancy tax proposals. Those guidelines say that at least two-thirds of the proceeds from the occupancy tax must be used to promote travel and tourism.
Davis said he believes some problems in the bill can be resolved. He introduced the bill last year, but didn't push for it to be heard because it didn't have unanimous support from local governments in the county. A resolution supporting the tax increase by the Maggie Valley board failed on a 2-2 vote. The November 2013 local elections produced a board majority that would back the tax, supporters say.
Even so, legislative guidelines for short sessions of the General Assembly stipulate that local bills not be controversial, and that they have unanimous support from the local delegation.
Presnell said she still opposes the bill. She said some residents of Haywood County are concerned that their taxes might go up to help pay for maintenance of whatever project is built.
"It's the upkeep that they're worried about more than anything," Presnell said, noting that someone will have to pay the light bill and mow the grass.
Moreover, critics are doubtful that the incremental revenue used to build a community pool would attract tourists, one potential benefit cited by the tax hike's supporters.
Davis said he's hoping Presnell can be convinced to move forward with the bill. Davis said that he's not a big fan of tax increases. "But I also don't feel like I should be in the position of state government keeping local government from doing what it wants to do," Davis said. "I was a county commissioner in Macon County for 10 years. I'm a strong proponent of local control."
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Backers haven't spelled out how revenues would be used, state rep says
RALEIGH - Haywood County commissioners and area municipal officials are hoping a proposed 50-percent increase in the region's occupancy tax will help them build capital projects and spur area tourism. But they face opposition from one of the region's legislators, and that could scotch the tax hike.
Sen. Jim Davis, R-Macon, who represents Haywood County, has filed a bill that would authorize the Haywood County commissioners to levy an occupancy tax of 2 percent, in addition to the 4 percent already in place. Rep. Joe Sam Queen, D-Haywood, has filed a similar bill in the House.
Rep. Michele Presnell, R-Yancey, who represents a portion of Haywood County, is the only member of the county's legislative delegation standing in the way of the bill. She said there are no "set-in-stone kind of plans" to use the money raised by the additional tax revenue.
As currently written, Senate Bill 318 would require proceeds from the tax to be used for "tourism-related capital projects." Legislative fiscal analysts estimate that the proposed new tax would bring in between $541,537 and $632,816 a year.
Supporters of the tax increase do not dispute Presnell's conclusion. "There's no specific plans; it's for product development," said Mark Clasby, Haywood County economic development director. "The purpose is to be able to raise funds to put into capital projects that would be used to bring tourism to Haywood County."
Haywood County Commission Chairman Mark Swanger said the money would be used for projects that would attract tourists to the county "and put more heads in beds." He said he didn't want to prejudge what an appointed committee might choose to do with the money.
Swanger did say some projects had been discussed, including a skating rink in Maggie Valley, lighting for community ball fields in Canton, and a regional sports complex with baseball or soccer fields. Boosters of the tax have suggested that building new or improving existing sports facilities could attract tournaments to the region.
Occupancy taxes are widespread in North Carolina. They're levied in 89 North Carolina counties, either by municipalities or the counties themselves. In some jurisdictions, visitors pay taxes imposed by both the municipality and the county.
The occupancy tax rate varies from 1 percent in Brunswick County to 8 percent in Mecklenburg County. Nine other localities in Brunswick County have occupancy taxes. The Mecklenburg County rate includes a 2 percent occupancy tax that goes to the NASCAR Hall of Fame.
Occupancy taxes are levied against hotel, motel, and inn room rentals, as well as tourist campgrounds. Visitors pay occupancy taxes in addition to local and state sales taxes. Local governments must get specific permission from the General Assembly to impose an occupancy tax.
Revenues from occupancy taxes generally are used for tourism promotion or development. In some coastal counties, revenues are used to haul sand to the beaches.
The proposed increase in Haywood County troubles Martha Tracy, who has two rental houses in the Fines Creek area of Clyde.
"They're planning to put up a sports complex, I think, in Maggie [Valley]," Tracy said. "They think that's really going to bring in the money. It's really business for Maggie, but not anybody else."
Tracy said she's already had to lower her rental rates because there's an oversupply of rental property in the area. She said people in the area haven't been able to sell their houses because of the sluggish economy, so they're renting them out to tourists.
"It's a dismal picture for property owners, for landowners," Tracy said, adding that if the new tax is approved, she'll likely have to lower her rates to compensate for the added tax burden.
Dale Walksler, who owns the Wheels Through Time Museum in Maggie Valley, said the area's tourism officials shouldn't get the additional tax revenue because they're not using the more than $900,000 a year they collect from the current 4 percent occupancy tax.
"Really, all they're trying to do is milk the cash cow," Walksler said.
The Wheels Through Time Museum features more than 300 classic and historic motorcycles.
Walksler is critical of the county's tourism website - visitncsmokies.com - and calls it "the master brainchild of a $950,000 budget on tourism."
The bill, as written, does not conform to uniform occupancy tax guidelines set out by a subcommittee of the House Finance Committee that reviews all occupancy tax proposals. Those guidelines say that at least two-thirds of the proceeds from the occupancy tax must be used to promote travel and tourism.
Davis said he believes some problems in the bill can be resolved. He introduced the bill last year, but didn't push for it to be heard because it didn't have unanimous support from local governments in the county. A resolution supporting the tax increase by the Maggie Valley board failed on a 2-2 vote. The November 2013 local elections produced a board majority that would back the tax, supporters say.
Even so, legislative guidelines for short sessions of the General Assembly stipulate that local bills not be controversial, and that they have unanimous support from the local delegation.
Presnell said she still opposes the bill. She said some residents of Haywood County are concerned that their taxes might go up to help pay for maintenance of whatever project is built.
"It's the upkeep that they're worried about more than anything," Presnell said, noting that someone will have to pay the light bill and mow the grass.
Moreover, critics are doubtful that the incremental revenue used to build a community pool would attract tourists, one potential benefit cited by the tax hike's supporters.
Davis said he's hoping Presnell can be convinced to move forward with the bill. Davis said that he's not a big fan of tax increases. "But I also don't feel like I should be in the position of state government keeping local government from doing what it wants to do," Davis said. "I was a county commissioner in Macon County for 10 years. I'm a strong proponent of local control."
| The economic impact of building a new jail--Part I | Statewide, Government, State and Federal | Gurley Joins Office of State Budget & Management |
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