MARCH 11, 2010 ISSUE
TDA Mulls Occupancy Tax Uses
The Boone Tourism Development Authority (TDA) recently voted to terminate its contract with the Boone Area Chamber of Commerce to administer the town’s occupancy tax dollars set aside for tourism promotion. The TDA is reportedly considering all options for use of the tax revenue.
The Town of Boone is authorized by the N.C. General Assembly to collect a room occupancy tax for the purpose of tourism development. The Boone Town Council voted last year to increase the occupancy tax from 3 percent to 6 percent, which took effect October 1, 2009.
The TDA is a Boone committee that oversees the occupancy tax expenditures. According to town ordinance, at least two-thirds of the tax proceeds must be used to promote travel and tourism in the town, and any remaining proceeds must be used for tourism-related expenditures, including capital improvement projects.
For many years, the TDA has contracted with the Chamber of Commerce, which provides office space and staff for the Boone Convention & Visitors Bureau, the agency charged with promoting tourist travel to Boone.
But Lynne Mason, a Boone Town Council member who sits on the TDA, said the TDA is currently reviewing the way it spends occupancy taxes for promotion.
“We just want to be able to look at finding the most economical and efficient way of administering the tax revenues,” she said. “The TDA is committed to being good stewards of these tax revenues.”
Mason noted that Boone has seen an increase in occupancy tax revenues over the past few years, but that has been attributed to increased room rates—not higher occupancy numbers.
Because the TDA is considering other options for use of the tax, it elected to not renew the contract with the Chamber of Commerce at the end of this fiscal year. The contract requires notification of a decision on renewal several months prior to the expiration of the term.
“Because of the notification requirements of the current [contract], we had to go ahead and terminate,” Mason said.
When asked if the TDA is considering dissolving the Boone Convention & Visitors Bureau and consolidating its services with other tourism agencies in the area, Mason said, “The TDA is considering all options right now—there’s been no decision made. We’re looking at a variety of possibilities on how to best administer these funds,” she said, which could possibly include continuing to work with the chamber.
The TDA is scheduled to meet again on Thursday, April 1.
Phone calls to Jim Wooten, chair of the TDA, were not returned as of press time.
Community Interest
News & Notes
Events
Arts & Entertainment
