Hendersonville finance committee hears sales-tax, occupancy tax and investment reports; STR collections rise

HENDERSONVILLE — Tamara Ingersoll, Hendersonville finance director, presented the city’s sales-tax and fund reports at the Finance Committee meeting on July 22, 2025, saying sales-tax revenues through May are up roughly 5% from the prior year but likely to finish the fiscal year “just a little bit under budget.”

Ingersoll told the committee the city’s state-share sales-tax receipts (including June) were about $88,000 under budget but roughly 2.5% higher than the prior year. She said overall local option sales tax revenue is up by a little more than 5% year over year, representing roughly a $1 million increase compared with the prior year.

On hotel/motel occupancy tax (TOT), Ingersoll said June revenue is now included and the year’s TOT receipts are slightly under budget but very close to the prior fiscal year’s total. The committee heard that short-term vacation rental (STR) collections — the state collects STR occupancy taxes and remits the city’s share — have climbed steadily since the city increased its levy two years ago. Ingersoll described STR collections moving from about $35,000 two years ago to roughly $48,000–$50,000 this year. She said STRs pay the same 4% occupancy rate as hotels; the state retains an administrative fee (about 0.75% of collections) and remits the remainder to the city.

Ingersoll reported investment-earnings receipts for fiscal year 2025 totaled about $1.5 million, above budget. She cautioned that the FY26 budget assumes more conservative investment returns and that the city plans to use a larger portion of fund balance in the coming year. The stormwater fund and the capital projects (PIP) fund are being reconciled after a system migration: stormwater figures were current through May with some outstanding June invoices; the PIP fund showed roughly $8.4 million in revenues through May with June receipts expected to bring the year’s total higher.

Committee members asked clarifying questions about timing and the budgeted use of fund balances. Ingersoll said outstanding June invoices and final reconciliation are expected in the next one to two weeks and that she will distribute a full package updated through June when reconciliation is complete. No formal committee action was required on the reports.

Votes at a glance: The committee accepted the meeting agenda (motion passed unanimously), approved the May 27, 2025, meeting minutes (motion passed unanimously), and later adjourned on a unanimous motion.