Mount Olive agrees to occupancy tax deal with county
By Steve Herring
Published in News on August 4, 2015 1:46 PM
MOUNT OLIVE -- The Mount Olive Town Board has a new member -- and an agreement with the Wayne County commissioners on a proposed hotel occupancy tax distribution.
The board Monday night appointed Thomas Preston Jr., 69, to the District 3 board seat that has been vacant since the death of George Fulghum in February.
In other business, the board approved a compromise with Wayne County commissioners on a proposed 1 percent countywide hotel occupancy tax.
The agreement requires that 70 percent of the hotel tax revenue generated in Mount Olive be used to promote travel and tourism there.
County commissioners were expected to discuss the deal today.
The agreement between Mount Olive and the county would require the authority to separate the net proceeds of the tax revenues generated in Mount Olive into two separate accounts -- one for Mount Olive and one for Wayne County.
Seventy percent of the total amount collected in the town would go to the Mount Olive account and 30 percent into the county account.
The authority would use 100 percent of the money in both accounts to promote travel and tourism in the collection area each account represents.
"The county has asked the legislature to impose a (hotel) occupancy tax on Wayne County," Mayor Ray McDonald Sr. said. "Because Goldsboro already has 5 percent, the only thing they can ask is for a one percent more increase, which would include Mount Olive's (Sleep Inn) hotel in this.
"There has been a back and forth. They have sent a resolution to the legislature asking for this one percent. There has been one meeting right after another and then there was a conference call, which I was involved in, and we kind of hacked out an agreement."
Along with the tax, the bill would create the Wayne County Tourism Development Authority.
Basically the agreement is that 70 percent of the one-percent tax collected in Mount Olive will be held in a reserve fund, Commissioner Joe Scott said.
The town can then submit a request to the Authority for a portion or all of the revenue for the promotion of travel and tourism within the town, he said.
The other 30 percent will go to the Authority for use in promoting travel and tourism county-wide, Scott said.
An agreement between Goldsboro and Wayne County for the construction of a city sports complex and the county's agricultural and convention center is dependent on the tax being enacted by the General Assembly.
The tax revenue could not be used for building the center. The revenue can only be used for marketing related to travel and tourism.
The agreement between Mount Olive and the county would require the authority to separate the net proceeds of the tax revenues generated in Mount Olive into two separate accounts -- one for Mount Olive and one for Wayne County.
Seventy percent of the total amount collected in the town would go to the Mount Olive account and 30 percent into the county account.
The authority would use 100 percent of the money in both accounts to promote travel and tourism in the collection area each account represents.
Town Manager Charles Brown said the wording of the agreement would be included in the charter creating the Wayne County Tourism Development Authority.
The board also welcomed a new member.
Preston, a former town commissioner, is the only candidate to file for that seat for the Nov. 3 municipal election.
McDonald. said the board had waited to appoint anyone to the seat because of the upcoming vote.
Since Preston was the only person to file for the seat,it was to decided to appoint him, he said.
Preston took his seat at the start of the meeting.
Fulghum also served as mayor pro-tem and the board has not had anyone in that capacity since his death, McDonald said.
McDonald said he, Town Manager Charles Brown and Commissioner Joe Scott had been attending numerous meetings related to town business.
Someone else is needed to help in that area, he said.
He suggested that since Preston will complete Fulghum's unexpired term that he thought it appropriate that Preston also finish out the mayor pro-tem term.
The board unanimously agreed and Preston took the oath of office at the end of the meeting.
Preston, who previously served from 2005-07, is semi-retired. He has operated PMI Roofing and Insulation for 31 years. The company has offices in Mount Olive and Wilmington.
He is a member of the Mount Olive First Pentecostal Holiness Church where he is a past deacon.
Preston is a Vietnam veteran, having served in the U.S. Air Force. He is a lifetime member of American Legion and VFW. He is past commander of American Legion Post 103 and past vice commander of VFW Post 9959.
He has served on the town's Airport Committee and on the Committee of 100.
He is married to the former Connie Jones. They have three children and three grandchildren.