Board approves lodging tax hike

Greene’s supervisors unanimously approved an amendment to the county ordinance that raises lodging taxes on visitors from two percent to five percent at their regularly scheduled meeting Tuesday, April 14.
“It will breathe some life into tourism in this county,“ said Chairman Steve Catalano.
The question of whether or not to increase the tax was a “no-brainer,“ said Supervisor Carl Schmitt, and the rest of the County Board agreed.
The transient occupancy tax is charged on rooms rented for less than 30 days, including those at hotels, motels, travel campgrounds, and the area’s numerous B&Bs. 
Money from the two percent tax went into the county’s general fund, but revenues from the portion of the tax in excess of two percent must be used solely for tourism or its marketing.
During the public hearing session of the meeting Roy Dye, executive director of Stanardsville Area Revitalization, said that *STAR* “heartily endorse(s) this proposal” because “most of the money of this additional tax will go toward tourism.“
But Chuck Swinney, co-owner of The Cottages at Chesley Creek Farm in Dyke, sought reassurance as to the disposition of the additional funds.
“My concern is that the (additional) three percent will go to the general fund and not to tourism … we don’t want the county coming in and claiming the money … I just want to get that clear,“ Swinney said.
Catalano reassured him.
“During the budget hearings we decided those funds would go directly to tourism,“ Catalano said.
In fact, according to Sen. Emmett Hanger, R-Mount Solon, who introduced the legislation that allows Greene to impose the tax at its maximum rate, all money in excess of two percent earned by the tax must be applied to tourism-generating activity.
Hanger also notes that proponents of the tax view it as a “self-help” measure that allows the tourism industry to essentially tax itself to promote economic development within that industry.
The tax imposed at its maximum rate means the following estimated revenue gains for Greene County: $33,000 for fiscal year 2010, $37,000 for fiscal year 2011, $39,000 for fiscal year 2012, $40,000 for fiscal year 2013, $42,000 for fiscal year 2014, and $44,000 for fiscal year 2015.
The added revenue comes at a time when the EDA is searching for a new location for its Visitors Center, currently located in Stanardsville, in a building that is being offered for sale.
Reached after the meeting, Greene County Economic Development Authority Chair Julia Morris said the funds would be used to help relocate the Visitors Center.
“We’re hoping to move (it) to the Ruckersville area within the 29-33 corridor.“ Additionally, Morris said, “We also want to expand marketing for tourism within the county. (Until now), we have not had the resources.“
According to the Virginia Tourism Corporation (VTC), the state’s tourism arm, every tourist brings roughly $70 in revenue to a locality. The travel industry’s general definition of a tourist is anyone who travels 50 miles or more for the purpose of his or her visit.