Hotel tax increase now in place
By Steve Herring
Published in News on October 21, 2015 1:46 PM
A project nearly eight months in the making took only minutes to finalize Tuesday morning as Wayne County commissioners voted unanimously to implement a 1 percent countywide hotel occupancy tax.
Commissioners actually had to take four different votes relating to levying the tax, which is effective Dec. 1.
More time was spent in a back-and-forth exchange between Commissioner Ed Cromartie of Mount Olive and County Manager George Wood as to why Mount Olive is not entitled to representation on the 12-member Wayne County Tourism Development Authority, which will oversee how the money is spent.
Mount Olive does not get a seat on the authority because of a compromise agreement in which 70 percent of the tax revenue raised in the town will be used to promote tourism there.
The other 30 percent is for "overhead" for administering the tax, Wood said.
But Cromartie argued that Mount Olive should be included because it is a countywide tax.
It is a countywide tax, but Mount Olive wanted to take care of its own tourism promotion, Wood said.
Also, Mount Olive is not eligible to use any of the revenue generated by Goldsboro's 5 percent occupancy tax, he said.
The first step Tuesday was a state-required public hearing.
Former Wayne County GOP chairman Bob Jackson was the only person to speak during the minute-long public hearing.
"I don't want this to get out, but I am in favor of this tax increase," said Jackson who is known for his opposition to tax increases. "This is probably the first time this has ever happened.
"But I believe that for the benefit of the whole it is the thing to do, and I congratulate you gentlemen for your decision to make it happen. There will be some good things that will happen because of this."
Later in the meeting Wood told commissioners they had four steps to complete. All four were unanimously approved.
The first was amending the agreement between the county and city of Goldsboro, which hinged on the tax being approved.
The city approved the amended agreement Monday night.
County and city officials in March announced the agreement based on increasing the city's hotel occupancy tax from 5 to 6 percent.
The plan is to divide the tax revenues into thirds between the city and county and for marketing travel and tourism in the county.
The city will give 12 acres of land on North Wayne Memorial Drive to the county as the site for its planned agricultural and convention center.
In exchange for the county agreeing to increase the size of the meeting area, the city asked for the tax increase and agreed to provide 33 percent of the additional revenues for the first 20 years for the center and 25 percent thereafter.
The county will use the money to help fund the center and its operations.
As amended Tuesday, the agreement now stipulates that for the first 20 years, 40 percent of the 5 percent levy will go to the county to offset construction, debt service and operating expenses for the center.
It will drop to 30 percent after the first 20 years.
The city will use 40 percent of the 5 percent levy to offset the expenses to construct, to operate and to maintain tourism-related facilities.
Also for the first 20 years, 20 percent of the 5 percent will be used by the city's Travel and Tourism Council for tourist-related marketing of facilities and events, including the center.
Also as part of the agreement, the county will loan Goldsboro $3 million at 1.5 percent interest over 15 years for its multi-sports complex.
The county also will contribute $200,000 to the city for the purchase or renovation of the former Goldsboro Country Club.
Initially a local bill was introduced in the state House to increase Goldsboro's hotel tax. But to comply with state travel and tourism guidelines, the tax was switched to a county one.
Wood has said that the countywide tax still meets the original intent of the agreement, but that the original agreement had to be amended to reflect the change.
The second step was approval of a budget amendment to reflect the changes.
"The budget amendment is the $200,000," Wood said.
The third step was adoption of the actual resolution imposing the tax.
The final step was the creation of the Wayne County Tourism Development Authority.
The board agreed to two changes that Commissioner Joe Gurley suggested.
One was that at least one member be someone who is involved in "substantial agricultural production."
That is important because of the center's focus on agriculture, Gurley said.
The second was that another appointee be either the county manager or his designee.
Members, who will be appointed by commissioners, will serve three-year terms.
The initial appointments are for different lengths in order that the terms can be staggered.
The city already has a nine-member tourism council. However, the county and city are recommending the membership be increased to 12 so that the two tourism boards mirror each other.