AG 2008 01 22 - Laserfiche WebLink

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To: The Honorable Cabarrus County Commissioners From: Cabarrus County Tourism Authority Board of Directors Subject: Hotel Occupancy Tax Increase Date: Januazy 4, 2008 On December 13, 2007, the Tourism Authority Boazd voted unanimously to request an increase in the hotel occupancy tax from its current five per cent (5%) level to six per cent (6%). As stated by the North Carolina statute authorizing occupancy tax collections, this is a formal request by the Cabarrus County Tourism Authority to the Cabarrus County Commissioners to vote in favor of a one percent (1%) increase in the occupancy tax rate. The occupancy tax is paid by visitors staying in Cabarrus County lodging facilities and is the Convention & Visitors Bureau's primary source of funding. Cabarrus County taxpayers do not contribute to the funding of the Tourism Authority or the Convention and Visitors Bureau. The request is directly related to the rapid growth of the tourism infrastructure in Cabarrus County. The anticipated growth of over 1,000 new hotel rooms and plans for several new and upgraded attractions in the marketplace within the next two years will require significant marketing and visitor management. The additional marketing efforts allowed by this increased funding will yield greater occupancy rates for both existing and new hotels during a critical period of hotel room absorption. It will also provide greater economic impact for all related Cabarrus County businesses and enhance sales tax collections that contribute to the county's budget for the benefit of Cabarrus County citizens. The current level of funding for the CVB is approximately $2 million per year. The additional one per cent (1%) tax will add approximately $400,000 to the fiscal 2008/2009 budget of the Convention and Visitors Bureau. Cabarrus County government is paid a fee of 5% of total tax collections to administer the taxes paid by visitors staying in the hotels. 3003 Dale Earnhardt Blvd ° Kannapolis, NC 28083 Toll Free 800-848-3740 ^ Phone 704-78Z-4340 ° Fax 704-78Z-4333 vdww.visitcabarrus. com