Occupancy tax up for vote
By Steve Herring
Published in News on July 20, 2015 1:46 PM
A bill that would implement a countywide 1 percent hotel occupancy tax is expected to pass its second and third readings today on the state House floor.
The session begins at 7 p.m.
The bill also would create a county tourism development authority.
It passed the House Finance Subcommittee on Occupancy Taxes Thursday and then the full Finance Committee.
The bill originally would have increased Goldsboro's hotel occupancy tax from 5 to 6 percent as part of a deal to provide city funding for Wayne County's proposed $16 million agriculture/convention center. But a decision was made to switch to a countywide tax since the original proposal was out of compliance with state travel and tourism guidelines.
As part of the agreement, the city will give the county 12 acres of land on North Wayne Memorial Drive on which to build the center.
In exchange for the county increasing the size of the assembly area, the city agreed to ask for the occupancy tax increase and to provide 33 percent of the additional revenues for the first 20 years for the center and 25 percent thereafter.
That money would be used by the county to help fund the center and its operations.
In another development, Wayne County commissioners on Tuesday will consider entering into a contract with Convergent Nonprofit Solutions, LLC to conduct a fundraising campaign for Impact Wayne and the Wayne Regional Agricultural and Convention Center.
The meeting will get under way with an agenda briefing at 8 a.m. followed by the formal session at 9. Both will be held in the commissioners' meeting room on the fourth floor of the county courthouse annex.
But before that session, city and county officials will meet with state Rep. John Bell in Raleigh this afternoon.
"We do have a meeting on Monday afternoon in Raleigh with some of the county commissioners and city (officials) in hopes to hear any concerns," Bell said.
Bell, who filed the bill, said he had seen comments by Stephanie Kornegay and her brother, Kevin, owners of the Mount Olive Sleep Inn, voicing concerns about the adverse effect the tax would have on their business.
"I don't understand where the concerns are coming from since the bill clearly states it is a one-percent occupancy tax for marketing and travel and tourism in Wayne County," he said. "So yes, it will affect the agriculture center, but it will also affect the (N.C.) Pickle Festival and (Wings Over Wayne) Air Show and anything we do here to market it to bring folks here to Wayne County."
Bell said he told the local legislative delegation there would be one final meeting before today's session.
If the bill passes the House today, it will be sent to the Senate.
Bell said one of the things that will be discussed today with Sens. Louis Pate and Don Davis will be who will shepherd the bill through the Senate.
"I have to get it through the House first," Bell said. "We have had good support from Rep. (Jimmy) Dixon and Rep. (Larry) Bell. Sens. Pate and Davis and I have been talking so we will figure who will lead it.
"I can lead it through the committees, but I can't do it on the (Senate) floor."
Bell reiterated that the revenue from the one percent is strictly for marketing.
The money for the agriculture center is a totally separate item to be worked out between the city and county from revenues generated by the current city 5 percent tax, he said.
"So that money (from the 1 percent) will be used by travel and tourism and our county to focus on getting people to come to our county and spend money and stay, fill up our hotels and restaurants," Bell said.
The Wayne County Development Alliance first contracted with Convergent Nonprofit Solutions four years ago to conduct a five-year fundraising campaign for Impact Wayne.
The Alliance is ready to conduct its second five-year fundraising campaign and contacted Convergent about conducting it.
At the same time, the county is finalizing the schematic design of the Wayne Regional Agricultural and Convention Center.
County commissioners have discussed a public fundraising effort that will include naming rights for some of the meeting spaces.
The Alliance and commissioners decided to conduct a joint campaign, and to hire to Convergent to conduct it.
Under the proposal the county and Alliance will split the cost evenly. The county's share would be $112,500, and one-half of the reimbursable expenses.
The goal is to raise $1.9 million to $2.4 million.
Of that total $900,000 to $1.2 million would be for the agriculture center and $1 million to $1.2 million for Impact Wayne.