AG 1998 08 17 - Laserfiche WebLink

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