Agenda - 02-20-1996 - VII-A - Laserfiche WebLink

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1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT MEETING DATE: February 20, 1996 Action Agenda Item # V-=-A SUBJECT: Increase in Occupancy Tax DEPARTMENT: PUBLIC HEARING: Yes jC No O.C. Visitors Bureau BUDGET AMENDMENT NEEDED: Yes No-X ATTACHMENT(S): INFORMATION CONTACT: Ted Abernathy(ext. 2325) Proposal (pages 2 -3) TELEPHONE NUMBERS: Hillsborough - 732-8181 Durham - 699-7331 Mebane - (910)227-2031 Chapel Hill - 967-9251/968-4501 Purpose: For the Board of Commissioners to consider a request from the Visitors Bureau to increase the county occupancy tax from 1%to 2%. Background: In July of 1991, the General Assembly of North Carolina enacted a bill allowing the Orange County Board of Commissioners to levy a room occupancy tax of up to 3% on the gross receipts derived from the rental of any room, lodging or similar accommodation. The Board of Commissioners subsequently approved a 1% occupancy tax which took effect September 1, 1991. In the 1995-96 fiscal year, the 1%tax was estimated to generate $154,810. The Chapel Hill/Orange County Visitors Bureau has used the receipts from this tax to develop and coordinate visitor services in Orange County and to implement marketing programs that enhance the economic activity and quality of life in the community. The Chapel Hill/Orange County Visitors Bureau currently employs a staff of two who implement more than 50 programs and strategies each year to increase the amount of visitor spending in the community. Additional funding is sought by the bureau to provide for additional programs to better serve a client base that has increased more than 400% in three years. Area hoteliers collecting occupancy taxes from their guests also expressed their desire to see additional sales and marketing programs implemented by the Bureau. The hoteliers have agreed to support an increase in the county occupancy tax(from 1%to 2%) if the proceeds are dedicated to the Chapel Hill/Orange County Visitor Bureau. With additional funding, the bureau will implement new programs and strategies that will result in increased hotel occupancy(particularly during the shoulder seasons), increased visitor spending, and an increase in the amount of retail sales dollars returned to the community. Recommendation: As the Board directs.