BOS to hold public hearing on lodging tax rate

The Greene County Board of Supervisors is expected to vote on a proposed amendment to the county ordinance to raise a lodging tax on visitors from two percent to five percent, at its regularly scheduled meeting April 14.  A public hearing will be held on the matter.
Currently a two percent transient occupancy tax is charged here on rooms rented for less than 30 days, including those at Best Western hotel, motels, inns, campgrounds, and the area’s numerous B&B’s.  Every county in the state is authorized to impose such a tax.
Back in January, Sen. Emmett Hanger, R-Mount Solon, introduced legislation authorizing Greene, among other localities, to impose the transient occupancy tax at its maximum rate.  Money collected from the two percent tax goes 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.
“The legislation allows (Greene and) several localities to go with a five percent transient occupancy tax as opposed to two percent, so long as the additional money is applied to tourism-generating activity,” says Hanger.
Hanger says that proponents of the tax view this as a “self-help” type measure that allows the tourism industry to essentially tax itself to promote economic development within that industry.
The tax does not apply to such rooms used for “alternative” purposes, such as banquet rooms and meeting rooms. If passed, the new tax rate takes effect July 1. 
Local leaders are hoping the extra tourism dollars help to boost Greene’s awareness and appeal among potential visitors to the area.
“It gives us the budget that’s not being paid out of the county’s general fund,” says Rob Murphy, chair of the Greene County Tourism Council and Assistant Headmaster for Advancement at Blue Ridge School.
The tourism committee, which serves as an advisory body to the Economic Development Authority (EDA), approached Hanger about introducing the tax hike measure.
Murphy says his group hopes to use the funds to initiate and staff a more visible visitors center near Routes 29 and 33.
One ongoing challenge to for local leaders has been shoring up enough volunteers to staff the existing information center in Stanardsville. Funds from the lodging tax would help greatly. 
Murphy said this week that his group has not finalized an actual location for the new visitors center.  He said, however, that it would begin in an already existing building, “with future plans of having its own home.”
As for an opening date, Murphy says: “We’d love to see it happen during the summer months (this year). But we (must exercise) the due diligence required.”
In the meantime, supporters of the tax hike claim it’s a win-win for local tourism efforts.
“I can’t think of a more perfect solution,” says Alan Pyles, owner of The Lafayette Hotel in Stanardsville. “It’s a tax that tourists will pay as they stay in the local area, and it brings our tax rate up pretty much equal to the area that surrounds us.”
Pyles adds: “It’s not like we’re moving the tax rate to the point that we’re more expensive than Charlottesville. It levels the field and increases our revenue to bring more commerce to our community, without costing Greene Country residents anything in additional tax.”
Pyles would like to see the money used to give more visibility to Greene as a destination location.
“Certainly the DC, Richmond, and Tidewater area seem to be our biggest draw toward day-trippers and weekenders. We need to find ourselves in more travel-related magazines and travel specific portals so that we can be know as a destination location.”
Chuck Swinney, owner of Chesley Creek Farm Cottages, agrees that the increased tax rate is a good thing.
“The (added) three percent has to go to tourism and can’t go into the general fund,” says Swinney. “As long as that’s done, then I’m all for it.” 
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 benefit of this fund will be a positive effect for the entire county,” says Murphy.
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.
Asked for the number of tourists that travel to Greene annually, Murphy said the figure is currently being updated.
“The bookings of the local B&B s are steadily growing, particularly as this area is being discovered for its beauty and accessibility to so many attractions.”