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AG 1998 08 17
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AG 1998 08 17
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Last modified
4/4/2002 7:32:05 PM
Creation date
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Meeting Minutes
Doc Type
Agenda
Meeting Minutes - Date
8/17/1998
Board
Board of Commissioners
Meeting Type
Regular
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BACKGROUND: <br /> <br />Raising the occupancy tax has always been an option. In fact, 1989 House Bill 813-Cabarrus <br />Occupancy Tax, allowed the County Commissioners to levy a room occupancy tax of not less <br />than 3% nor more than 5% of the gross receipts derived from the rental of any room, lodging, <br />or similar aecomraodation furnished by a hotel, motel, inn or similar place within the county. <br />It also created the Cabarms County Tourism Authority to develop and promote tourism, <br />tourist-related support services and facilities, tourist-related events, tourist-related activities or <br />tourist attractions. <br /> <br />The NORTH CAROLINA TRAVEL AND TOURISM COALITION supports fair and <br />uniform taxation and is a lobbying organization for the tourism industry. Most hotels, motels <br />and transient rental properties in North Carolina are subject to a local occupancy tax of 3% to <br />6%. Occupancy taxes can encourage economic development if they are used wisely to <br />promote the area as a tourism destination, which is the t~aditional use of occupancy taxes. <br />(From the NCTTC Policy Statement.) The increase to 5% in Cabarrus County is in line with <br />the policy positions of the NORTH CAROLINA TRAVEL AND TOURISM COALITION <br />which designate that the revenues must be used for Promotional Activities and Local Tourism <br />Projects only. <br /> <br />In addition, initial conversations with 3ira Hobbs, lobbyist for the NORTH CAROLINA <br />HOTEL MOTEL ASSOCIATION, indicate that while increased taxes are never preferred, the <br />purchase of land and the building of a convention or exhibition center is the intended purpose <br />of the additional 2%. He has indicated his support for this specific project combination and <br />raising the occupancy tax in Cabarrus County to 5% for that purpose. <br /> <br />The Tourism Authority Board and the Convention & Visitors Bureau offices have worked <br />diligently to research and analyze the best options for Cabarrus County to use the 5% tax. In <br />the boards initial meetings it was agreed that the Marriott alone did not justify raising the <br />occupancy tax to 5% because it did not meet the needs of the KPMG study in total meeting <br />space. The board felt the additional 2% must be reserved until a project could meet those <br />needs. The proposal to purchase 14-Acres of land adjacent to the Marriott for a future <br />Exhibition Hall/Civic Center matches the intent of the additional 2% because it would <br />complete the minimum 86,000 square foot requirement of the KPMG study. The land is <br />adjacent and could be connected to the Marriott meeting site to create one package site. It <br />would be managed by the Tourism Authority Board and the Convention & Visitors Bureau in <br />such a way it meets public need and distributes business equitably to all hotels in Cabarrus <br />County. <br /> <br />3 <br /> <br /> <br />
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