Lawmakers agree on hotel tax
By Steve Herring
Published in News on August 3, 2015 1:46 PM
The original bill that was introduced by Rep. John Bell would have increased the Goldsboro's hotel occupancy tax from 5 to 6 percent. It was switched to the 1 percent countywide tax to avoid a conflict with House Finance Committee guidelines. The revenues from the tax can only be used to promote travel and tourism.
It was at that point that the owners of the Mount Olive Sleep Inn said the tax was unfair because their hotel is the only one outside of the Goldsboro city limits.
Over the past few weeks, a compromise has been reached between the county and Mount Olive requiring that 70 percent of the hotel tax revenue generated in Mount Olive be used to promote travel and tourism there.
The compromise is expected to be discussed by the Mount Olive Town Board when it meets today and by county commissioners on Tuesday.
But there remains concern on the part of some in Mount Olive that an actual amendment to the bill is needed to ensure that the split remains in effect, Sen. Don Davis said in an interview prior to the Friday session.
That is because the bill would also create the Wayne County Development Authority.
"I think some of the concern, at least as I understand them, is an inter-local agreement in itself is not necessarily something that can bind the TDA (Tourism Development Authority) that by statute would actually have the authority of disbursing the funds," Davis said. "So in this case, the TDA is established in this bill, therefore that is where the interest lies in making sure that there is statutory language that then would truly bind the TDA to that 70-30 distribution."
Davis said as the former mayor of the small town of Snow Hill, he understands Mount Olive's concerns.
"More importantly, I think it is the greater picture that I am interested in," Davis said. "There is so much good work going into this project. It is critical to keep everybody working together because how we deal with this project will impact how we will work on other projects."
Davis said he had been approached by Stephanie Kornegay, who along with her brother, Kevin, operate the Mount Olive Sleep Inn, about a possible amendment.
Davis said he coordinated a meeting on the issue, but has been "talking with everyone."
"This goes well beyond Stephanie," he said. "I think it is entirely early to say if an amendment would be introduced."
Sen. Louis Pate has said he does not support any amendments to the bill. Any agreement over how the money is divided is best left up to local officials to resolve, he said.
"We are trying to wrap things up, and I am very hopeful that this bill will be heard, and we get it on out there because it is critical to the county," Pate said during the Friday meeting. "I think Wayne County is on the cusp of doing some big things. With the (U.S. 70) Bypass, (Interstate) 795 and all of these things that we have going for us, I believe that we can accommodate the agriculture center along with the agriculture school the University of Mount Olive is starting and of course, the community college.
"All of these things fit in together because we are right in the hub of a big agricultural area and folks, we are going to have to do more and more to be able to feed the world as the population increases."
He promised to do his "dead-level best" to get the bill out of the Senate.
All that is left is how the tax will be implemented -- inter-local agreement, or through an amendment to the bill itself, or both, Davis said.
Another option is passing a countywide bill, but carving Mount Olive out, he said.
But regardless of what anyone has said, the project is not in jeopardy, he added.
Rep. John Bell said it was his understanding that Wayne County officials had worked through the concern with Mount Olive officials and developed an agreement between the county and Mount Olive.
"That will be applied to the bill," Bell said. "I do hope the bill will get through the Senate, but I will have to lean on those guys. If it comes through in a clean version and is something that we all agree on we will concur and move on."
Rep. Jimmy Dixon, a co-sponsor of the bill, said he has a record of opposing tax increases, but that this is one worthy of investing taxpayers' dollars.
"There are some element that I think could have been managed a little bit better, but involving the folks, some of the folks from Mount Olive who felt like they were not in the loop early enough," he said. "I think they have a legitimate cause of concern there.
"But I think that has been worked out. But when you look at what this will do, you can't help but support it. I hope the Senate will act in haste."
Rep. Larry Bell said he co-sponsored the bill and hopes to see it move forward in the Senate.
"I think it will help travel move forward in the county," he said.