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Board debates occupancy‑tax uses as visitors bureau and arts leaders urge continued funding
Summary
The county's visitors bureau reported strong post‑pandemic growth and urged the board to preserve programmatic advertising and sales budgets; arts groups and local businesses urged continued occupancy‑tax funding while some commissioners said a portion could be used for other county priorities.
County budget staff and the visitors bureau presented occupancy‑tax revenues and options for how the fund could be used; the board and members of the public debated whether to preserve programmatic tourism spending or redirect some funds to other county needs.
Budget director Kirk Vaughn told the board that Orange County's occupancy‑tax revenues declined sharply during the pandemic but have since rebounded, with strong growth since 2021 and a more than 30% annual growth rate in recent years. He said the fund is held in a special revenue account — the Visitors Bureau Fund — which also includes the Arts Commission and related outside agencies. The town of Chapel Hill contributes a portion of its occupancy tax above $1 million under a long‑standing agreement; that contribution grew in recent years and helped increase available program funds.
Why it matters: Occupancy tax is dedicated to tourism‑related activities under state law and local practice. How the county spends this revenue…
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