Occupancy-tax revenue increases

Published 5:15 pm Tuesday, October 1, 2013

After three years of continuing declines, revenue generated by Washington’s occupancy tax increased by about $11,000 during fiscal year 2011-2012, according to data from the N.C. Department of Commerce.

“The big impact in FY11-12 was hurricane Irene. Unfortunately/fortunately, because of our location we get a lot of hotel traffic during and following hurricanes.  Relief workers and contractors were filling our hotels rooms for a good six months,” wrote Lynn Lewis, Washington’s tourism-development director, in an email.
She also addressed the branding effort.
“During the last fiscal year we rolled out new creative showcasing the new brand for Washington. The biggest of those projects was the website. Our inquiries and visitation are up. The new marketing and an improving economy couple to show an improvement in revenues for the area,” she wrote in the email.

The city’s 6-percent occupancy tax generated $250,930 in gross revenue during fiscal year 2011-2012, which ran from July 1, 2011, to June 30, 2012. The occupancy tax generated $239,560 in gross revenue in the 2010-2011 fiscal year.

Of the gross tax revenue generated in 2011-2012, the Washington Tourism Development Authority received $243,402. The remaining $7,528 went to the City of Washington for providing administrative services to the Washington Tourism Development Authority.

Of the gross revenue generated in fiscal year 2010-2011, WTDA received $232,373, with $7,187 going to the city.

In fiscal year 2009-2010, Washington’s occupancy tax generated $244,628 in gross revenue, with $237,295 going to the authority and $7,333 going to the city for administrative purposes. In fiscal year 2008-2009, the city’s occupancy tax generated $255,280 in gross revenue. Of that, the city retained $7,658 for administrative charges while the balance of $247,622 went to the WTDA.

For every $100 spent on lodging such as hotel and motel rooms, the city collects $6 in taxes.

State law dictates that occupancy tax revenues be used on programs intended to bring more people for overnight stays to areas served by agencies like the WTDA. Washington retains 3 percent of the occupancy-tax revenue for WTDA administration while the WTDA receives the balance.

 

About Mike Voss

Mike Voss is the contributing editor at the Washington Daily News. He has a daughter and four grandchildren. Except for nearly six years he worked at the Free Lance-Star in Fredericksburg, Va., in the early to mid-1990s, he has been at the Daily News since April 1986.
Journalism awards:
• Pulitzer Prize for Meritorious Public Service, 1990.
• Society of Professional Journalists: Sigma Delta Chi Award, Bronze Medallion.
• Associated Press Managing Editors’ Public Service Award.
• Investigative Reporters & Editors’ Award.
• North Carolina Press Association, First Place, Public Service Award, 1989.
• North Carolina Press Association, Second Place, Investigative Reporting, 1990.
All those were for the articles he and Betty Gray wrote about the city’s contaminated water system in 1989-1990.
• North Carolina Press Association, First Place, Investigative Reporting, 1991.
• North Carolina Press Association, Third Place, General News Reporting, 2005.
• North Carolina Press Association, Second Place, Lighter Columns, 2006.
Recently learned he will receive another award.
• North Carolina Press Association, First Place, Lighter Columns, 2010.
4. Lectured at or served on seminar panels at journalism schools at UNC-Chapel Hill, University of Maryland, Columbia University, Mary Washington University and Francis Marion University.

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