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Campbell County board approves raising lodging tax to 7%; hoteliers voice opposition
Summary
After a public hearing in which local hotel owners warned a sharp increase would hurt business, the Campbell County Board voted to raise the transient occupancy (lodging) tax from 2% to 7%, designating the 3–5% portion for tourism and an additional 2% largely aimed at parks and recreation funding.
Campbell County staff presented a plan to increase the county transient occupancy tax from 2% to 7%, with the portion between 3% and 5% required by state law to be used for tourism-related activities and the final 2% proposed to fund parks and recreation investments.
At the public hearing, David Francis, owner of the Comfort Inn and Suites in Lynchburg (Campbell County), told the board the jump would be a 350% increase in the lodging tax he pays and would place Campbell County at a competitive disadvantage with neighboring Lynchburg. “I ask that you don't tax our customers, anymore than it is,” Francis said, arguing the higher rate would hurt occupancy and business prospects.
County staff said prior outreach informed a tourism-funding plan and that the adopted budget currently reflects projected revenue from a 7% rate (estimated in the packet at $1,375,000). After discussion, a supervisor moved to adopt a 7% occupancy tax; the motion passed on a voice vote with one member recorded as voting no. The county will follow code-required steps to implement the new rate and allocate the required shares for tourism and other discretionary uses.
