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Residents and council discuss returning occupancy-tax referendum to ballot after Feb. 2024 defeat
Summary
A resident asked why the town placed an occupancy-tax referendum back on the ballot after it was rejected by voters in February 2024; council members said the tax targets visitors and that staff recommended another ballot question after additional outreach.
A resident told the Indian Trail Town Council on Oct. 14 that she was puzzled and concerned the council placed an occupancy-tax referendum back on the ballot after voters rejected it in February 2024.
"This measure was previously presented to the residents and was voted down in 02/2024," said Susan Somali during the public-comment period, asking council members to explain why the issue resurfaced so soon. "Reintroducing a measure that was recently rejected raises questions about the council's responsiveness to the will of the voters and the rationale behind revisiting this issue without significant changes ... Could you please provide insight into the reasoning for this decision?"
Council members and the mayor responded during the council-comment portion of the meeting. Council member Dennis Gay said he is personally opposed to the occupancy tax but supports letting voters decide. "I've made it very clear that I'm against it. But one thing I want the public to be able to do is to vote on things," Gay said.
Other council members and the mayor explained the tax is charged to visitors who stay in local lodging, not to residents, and that towns in the region use occupancy taxes to fund tourism and related services. "Everybody thinks it's an additional tax for the citizens when, in fact, it's a person that visits Indian Trail ... and the money that derives from those taxes goes to Indian Trail tourism," a council member said. Mayor David Cone described neighboring towns' experiences, noting Monroe collected roughly $800,000 in occupancy-tax revenue, and said funds typically go to a tourism committee that decides spending priorities.
Council members said staff recommended placing the measure on the ballot again after concluding prior advertising and outreach had not sufficiently informed voters. "What I think happened was we felt like we didn't advertise it enough so that people would understand what it really is," Council member Clarence Alsabrooks Jr. said. The mayor and other council members said the decision reflects a desire to give voters a fresh opportunity to weigh the proposal with more public information.
No formal vote on the referendum occurred at the Oct. 14 meeting; councilors described the matter as an item that will be decided by voters if it appears on the ballot.
