By Noelle Edwards
nedwards@salisburypost.com
The Salisbury City Council voted unanimously Tuesday to hold a public hearing on levying an occupancy tax on hotel rooms and allowing the establishment of a Salisbury tourism development authority.
The city had made establishing its own occupancy tax a one-year goal during a retreat in February. That action followed the Rowan County Board of Commissioners’ refusal to support increasing the county hotel tax to 6 percent from the current 3 percent.
So Salisbury officials took their case to Raleigh. State lawmakers passed legislation on Aug. 6 that allows the city to set up its own tourism development authority, which could decide its own occupancy tax rate. The rate, expected to be 3 percent, would be in addition to the countywide tax.
The public hearing is scheduled for the Sept. 1 council meeting. After that, the council could adopt a resolution and an ordinance that would make the tax and new tourism development authority final.
Doug Paris, assistant to the city manager, said at Tuesday’s meeting that everything was done publicly, including the retreat in February.
Board of Commissioners members have said in the past that they weren’t made aware of the city’s plans.
Joe Morris, Community Planning Services director, said at Tuesday’s meeting that Salisbury and Rowan County have occupancy taxes lower than in nearby communities. Mecklenburg County, for instance, charges an 8 percent tax. Cabarrus County charges 5 percent.
Based on the current occupancy and number of hotel and motel rooms available, Morris said a 3 percent tax would give Salisbury $280,725 in revenue for a year. Based on North Carolina law, two-thirds of that revenue must be used for marketing and promotions, but one-third of it can be used for tourism-related expenses, such as capital projects.
The establishment of a separate tourism development authority for the city would still allow Salisbury and Rowan County to collaborate on marketing and promotion, and some of Morris’ presentation focused on that possibility.
Councilman Mark Lewis said it is important for the city to promote tourism, which this tax would help fund. He also said it’s important to keep in mind that the tax is paid by visitors to Salisbury, not Salisbury citizens, and that when Salisbury residents visit other areas, they likely pay a higher occupancy tax than people who visit Salisbury.