Greene to vote on raising tax rate on lodging stays

The Greene County Board of Supervisors is expected to vote on a proposed county ordinance amendment that would raise the lodging tax on visitors from 2 percent to 5 percent, at its meeting Tuesday. A public hearing will be held on the matter.

Currently a 2 percent transient occupancy tax is charged on rooms rented for fewer than 30 days, including those at the Best Western hotel, motels, inns, campgrounds and the area’s numerous B&Bs. Every county in the state is authorized to impose such a tax.

Back in January, Sen. Emmett Hanger, R-Mount Solon, introduced legislation authorizing Greene, among other localities, to impose the transient occupancy tax at its maximum rate. Money collected from the 2 percent tax goes into the county’s general fund. But revenues from the portion of the tax in excess of 2 percent must be used solely for tourism or its marketing.

“The legislation allows [Greene and] several localities to go with a 5 percent transient occupancy tax as opposed to 2 percent, so long as the additional money is applied to tourism-generating activity,” said Hanger.

Hanger said proponents of the tax view this as a “self-help”-type measure that allows the tourism industry to essentially tax itself to promote economic development within that industry.

The tax does not apply to such rooms used for “alternative” purposes, such as banquet rooms and meeting rooms. If passed, the new tax rate would take effect July 1.

Local leaders are hoping the extra tourism dollars help to boost Greene’s awareness and appeal among potential visitors to the area.

“It gives us the budget that’s not being paid out of the county’s general fund,” said Rob Murphy, chairman of the Greene County Tourism Council and assistant headmaster for advancement at Blue Ridge School.

The tourism committee, which serves as an advisory body to the Economic Development Authority, approached Hanger about introducing the tax hike measure.

Murphy says his group hopes to use the funds to initiate and staff a more visible visitors center near U.S. 29 and U.S. 33.

One ongoing challenge to for local leaders has been shoring up enough volunteers to staff the existing information center in Stanardsville. Funds from the lodging tax would help greatly.

Murphy said last week that his group has not finalized an actual location for the new visitors center. He said, however, that it would begin in an already existing building, “with future plans of having its own home.”

As for an opening date, Murphy said: “We’d love to see it happen during the summer months [this year]. But we [must exercise] the due diligence required.”

In the meantime, supporters of the tax hike claim it’s a win-win for local tourism efforts.

“I can’t think of a more perfect solution,” said Alan Pyles, owner of The Lafayette Hotel in Stanardsville. “It’s a tax that tourists will pay as they stay in the local area, and it brings our tax rate up pretty much equal to the area that surrounds us.”

Pyles added: “It’s not like we’re moving the tax rate to the point that we’re more expensive than Charlottesville. It levels the field and increases our revenue to bring more commerce to our community, without costing Greene Country residents anything in additional tax.”

Pyles would like to see the money used to give more visibility to Greene as a destination location.

“Certainly the D.C., Richmond and Tidewater area seem to be our biggest draw toward day-trippers and weekenders. We need to find ourselves in more travel-related magazines and travel-specific portals so that we can be known as a destination location.”