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Supervisors direct staff to draft plan for raising lodging tax; options include dedicated tourism spending and higher rates
Summary
The board discussed raising the transient occupancy (lodging) tax, heard staff estimates of current and projected revenue, and asked staff to return with a program‑level plan showing how tourism‑directed revenue could fund capital and programming; supervisors were open to up to 5% (tourism‑earmarked) and asked staff to analyze higher levels.
The Board of Supervisors discussed options to adjust the county’s transient occupancy tax (lodging tax) and directed staff to develop a programmatic plan and revenue scenarios for the board’s review.
Staff said the county currently budgets roughly $400,000 in lodging‑tax revenue for fiscal year 2026, up from just over $250,000 in FY 2024 as new rooms have come online. Presenters summarized state code provisions: an initial band of levies (described in the staff presentation as 0–2 percent) can be used at the county’s discretion, additional increments (3, 4 and 5 percent) must be directed to tourism‑related purposes, and amounts above 5 percent revert to general discretionary revenue. Staff and supervisors noted that the county would need to consult hotel operators and hold a public hearing before implementing tourism‑earmarked increases.
Why it matters: County leaders said lodging‑tax revenue could be used to expand tourism programming, market the county, support events that bring multi‑night stays (for example, tournaments), and fund capital improvements that attract visitors. Board members said they want a clear plan tying proposed tax increases to concrete tourism outcomes and operating costs before proceeding.
Key fiscal and program details quoted by staff: - FY 2024 lodging tax collected: just over $250,000. - FY 2026 expected lodging tax: approximately $400,000 (staff projection). - Rough rule of thumb cited in discussion: each percentage point of lodging tax was estimated to bring roughly $200,000 in annual revenue (presenters framed this as a rough estimate and asked staff to quantify precisely).
Board direction and next steps: Supervisors asked county staff (economic development, parks and recreation and finance) to prepare a multi‑year program plan (years 1–10) showing: expected revenue at various tax levels; an outline of tourism programming and capital investments that would meet state code requirements for tourism‑earmarked funds; operating and maintenance costs for proposed amenities; and a recommended public‑engagement sequence (hotel operator meetings and public hearing). Several supervisors expressed interest in exploring the 3–5 percent band (tourism‑earmarked) and asked staff to also show scenarios above 5 percent. No formal vote was taken.
Staff cautioned that capital projects and ongoing programming require operations and maintenance funding; presenters said staffing, equipment and maintenance costs should be included in any plan so capital investments are sustainable. Supervisors asked staff to examine recent budgets to identify existing items that could be shifted into tourism categories and to show how incremental percentages would be allocated across marketing, special events, facility debt service and operations.
Ending: Staff will draft and return to the board with revenue scenarios, a recommended programmatic framing for tourism‑earmarked spending, and an engagement plan for hotel operators and the public. Any change would require the statutory engagement steps and a public hearing before a final board decision.
