SAN JUAN COUNTY HOTEL/MOTEL TAX

Parks to benefit if hotel/motel tax increased

posted 02/07/02
Doubling the hotel/motel tax would mean an additional $100,000 a year for county parks and $325,000 for tourism promotion. County Commissioners held a work session on imposing an additional 2 percent tax on lodging facilities Feb. 5, 2002. Commissioners Darcie Nielsen and John Evans favored the increase. The proposal will be discussed again on Feb. 12.

Commissioner Rhea Miller advised against increasing the tax. She was concerned the public had not been informed and cited state reports on the economy. "The economy is poor," she said. "No amount of advertising is going to change that. Adding 2 percent could aggravate the situation." She noted the increase in the number of lodging facilities. She asked, " Is the problem there are too many pieces of the pie?"

Commissioner Darcie Nielsen proposed reconfiguring the allocations of the current tax. She wants the 30 percent which now goes to the county Visitor Information Service (VIS), special projects and into a reserve fund to be given instead to county Parks for capital needs.

Under her proposal, the VIS would be funded out of the new 2 percent tax. She suggested the county Economic Development Council could oversee a tourism promotion campaign. Currently the county's EDC is part of Island County's EDC program.

In order to impose the tax increase, the BOCC must appoint a Lodging Tax Advisory Committee (LATC). The BOCC would then present a proposal to the committee which would then have 45 days to study it. The LATC would hold at least one public hearing during the 45 days. The committee would present its recommendations to the BOCC.

Representatives of the Orcas Island and San Juan Island Chambers of Commerce and the county-wide Business Association of San Juan County spoke in favor of the tax increase. They presented a list of potential members for the LATC which is required under state regulations.

Mike Stohlmeier of the BASJC suggested a 12-member committee consisting of an elected official (most likely the auditor), five people from the lodging industry, representatives from Lopez, Orcas and San Juan Island Chambers of Commerce and the BASJC, one person from the VIS, one person from the EDC and one person from the Town of Friday Harbor's LATC. The representatives from the town and the EDC would be non-voting members.

There is a five-member LATC now. County Prosecutor Randy Gaylord told the BOCC they have a range of options regarding the committee. They can disband, expand, or replace the committee. County Auditor Si Stephens said the state requires an equal number representing those who are collecting the tax and those who are receiving funds from the tax. The compostion of the LATC will be discussed at the Feb. 12, 2002 meeting.

The role VIS would play if the tax was imposed was another topic of discussion. All three commissioners praised the work of the VIS. Evans considers it very important and wants to make sure in doesn't get lost in the restructuring process. "The key aspect is the type of information about the culture and ambiance VIS provides," he said. "It is a large measure of why people want to come here."

Miller praised the VIS activities. "I support it 100 percent. Their production is the best I've seen of any. It tries to give everybody an equal opportunity."

Nielsen wants to see the role of VIS continued but thinks there are efficiencies to be gained.

The composition of the LATC and a BOCC proposal to be given to the LATC will be discussed from 2:30 to 3 p.m. Tuesday, Feb. 12, 2002 in the county Courthouse.

Additional hotel/motel tax discussed today

posted 02/05/02
Should the hotel/motel tax for San Juan County be doubled and the proceeds from the increase used to promote tourism? The county Commissioners will discuss the pros and cons of that idea during a worksession scheduled for 2:30 p.m. Tuesday, Feb. 5 in the Commissioners Hearing Room.

Commissioner Darcie Nielsen favors imposing an additional 2 percent tax. Her proposal suggests changing the way the current 2 percent tax is allocated. The county uses the following formula:

• 40 % -- Performing and Visual Arts
  
  
• 30 % -- County Fair/Multi-purpose Facilities
  
  
• 20 % -- Visitor Information Services (VIS)
  
  
• 5 % -- Special Projects Fund
  
  
• 5 % -- Reserve Funds

Nielsen suggests giving the 30 percent allocated to VIS, Reserve and Special Projects Funds to the county Parks capital facilities fund. Under her proposal, the VIS and tourism promotion would be funded out of the new 2 percent. An expanded Lodging Tax Advisory Committee would provide oversight and the county Economic Development Council would carry out the promotion program if her plan was adopted by the BOCC.

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