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Residents and businesses press council on proposed lodging tax, conflicts of interest and school funding

Colonial Beach Town Council · May 22, 2025
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Summary

During public comment, multiple speakers — including local lodging operators, tourism advocates and residents — urged the council to provide clear plans for any transient‑occupancy tax increase, to follow state guidance, and to address possible conflicts of interest and budget priorities before changing tax policy.

A broad cross‑section of Colonial Beach residents and business owners used the meeting’s public‑comment period to press council members for clarity about a proposed increase in the transient‑occupancy (lodging) tax, to urge that any revenue increase be at least partly dedicated to tourism promotion, and to raise concerns about conflicts of interest among elected officials.

Tom Larson and several commenters noted tourism promotion work and upcoming events; Joni Millward of the Virginia Osprey Foundation announced that Colonial Beach will be included in a two‑year osprey‑nest study conducted by William & Mary and partner agencies and asked the town to be aware of the study in jurisdictional terms. Kelly Woods Vaughn (Colonial Beach Historical Society) announced a new exhibit and the June 8 grand opening of the T‑ball field at 717 Marshall Ave.

Several lodging‑industry operators and tourism‑dependent small businesses urged the council to show how any transient‑occupancy tax increase would be used to market the town and increase visitation, arguing an added tax could reduce bookings if not coupled with marketing that expands demand. David Lipshaw (Colonial Beach Plaza B&B) and Kelsey Beiser (small‑business owner) said owners absorb seasonal revenue swings and worried an added percentage point could harm off‑season viability unless a portion is dedicated to promotion.

Will Nuckols and others also raised ethics concerns, asking council members to recuse themselves from dialogue and votes when they have direct business interests in lodging or related properties, and urged the council to treat appearances of conflicts with the same seriousness as actual conflicts. Several speakers asked for timely follow‑up to FOIA requests and for transparent accounting of dedicated funds such as the beach/cleaning line item.

Council responses: the chair assured commenters the town manager would follow up; staff offered to provide additional information on how lodging‑tax revenue would be allocated and to return with specifics. The council did not vote on a lodging‑tax increase at the meeting; instead budget options, including an increase in the transient‑occupancy tax and a small real‑estate tax rise, were discussed as possible revenue paths during budget deliberations.

What to watch: council staff and the town manager are expected to provide written follow‑up on lodging‑tax options, projected revenue uses (tourism promotion vs. general fund), and responses to FOIA requests noted by commenters.