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TDA asks Newland to facilitate occupancy-tax collection; council weighs enforcement, membership and conflicts
Summary
The town's Tourism Development Authority asked the council to help ensure occupancy taxes are collected (by notifying booking platforms) and sought guidance on quorum/attendance rules and board composition amid concerns about conflicts and audit transparency.
Members of the Tourism Development Authority told the council the authority needs clarity and support to ensure occupancy-tax revenue is consistently collected and to resolve governance questions that are hampering their work.
"The tourism development authority would request that the town of Newland reach out and set these things up in place so that we, as a tourism development authority and you as town council, don't get people who say, well, so and so is paying it and so and so is not," the TDA chair (speaker 13) said. He proposed sending official notices or establishing collection through online booking platforms such as Airbnb, VRBO or Expedia so the platforms remit taxes directly.
The TDA chair told the council that 100% of the occupancy-tax revenue flows to the authority and that statute/resolution language splits the funds roughly into one-third for festivals and two-thirds for promotion. He said the authority is preparing a plan and a budget and welcomed audits to address perceptions of unfairness.
Council members and residents raised governance questions: the TDA's enabling resolution allows up to five members but several current seats are vacant or have missed multiple meetings. The authority asked for a legal opinion on whether remote participation counts as attendance for quorum and voting; members said uncertainty over what constitutes "attendance" is hampering decision-making.
Residents also raised potential conflicts of interest where board members run events that might seek TDA support. The TDA chair said the authority would work on a transparency plan and recommended that the town manager and council help facilitate clear collection procedures with third-party booking platforms.
No formal ordinance or vote to change collection procedures or board composition was recorded at the meeting; the TDA said it will prepare recommendations and requested the council's direction on enforcement options and a legal opinion about attendance rules.
Next steps: TDA to work with town staff to draft outreach to booking platforms, produce a budget plan for occupancy-tax spending, and seek a legal opinion on quorum and attendance rules.
