Hardy voices opposition to hotel occupancy tax
Republican Fayette County Commissioner Joseph A. Hardy III voiced opposition to the proposed hotel occupancy tax at Monday’s candidate forum, saying he wasn’t against the tax because his daughter owns Nemacolin Woodlands Resort and Spa, but rather because it is another layer of taxes that unfairly impacts businesses. Speaking at a candidate forum for all seven county commission candidates, Republican and Democrat, Hardy read from a prepared statement when asked if he would support the tax that would add up to 3 percent to the cost of hotel rooms in the county. Fayette is one of only three counties in the state that do not assess the tax.
“If this issue comes before the Fayette County commissioners I will not vote for it,” Hardy said, explaining that the reason is not because he or Maggie Hardy Magerko owns Nemacolin, but because he opposes the tax and others like it.
After Hardy said he was against the tax and prior to answering his own separate question, Democratic candidate Vincent Zapotosky said he supports implementing the occupancy tax. Zapotosky then remarked that although Hardy is against the tax, “it wasn’t a problem” for Hardy when the tax assessment at Nemacolin Woodlands was significantly reduced several years ago, which dropped the amount of property taxes paid to the county, school district and township.
In early 2003, the assessed value on the 877-acre core of the mountain resort was reduced to $35.4 million, dropping by $29.5 million from $65 million.
The hotel tax, being supported by the Fayette County Tourism Alliance, could generate more than a half-million dollars annually, and would relieve the county from making a $20,000 annual contribution to the Laurel Highlands Visitors Bureau.
The issue has been discussed by tourism officials over the last six years, but has never come before the commissioners for a vote. Although only two of the seven candidates on the Democratic and Republican ballots on May 15 were asked questions about the issue, three others also addressed it. The question was asked at a forum held at the State Theatre Center for the Arts sponsored by the Fayette Chamber of Commerce. Each of the candidates picked sealed envelopes and then was asked to answer the specific question contained within.
Hardy said the proposed hotel tax negatively impacts one business segment. Hardy also said he philosophically agrees with Republican Commission Chairwoman Angela M. Zimmerlink who has spoken out against taxes that unfairly burden businesses.
Hardy, reading from a prepared statement, then directed all questions regarding Nemacolin Woodlands to his spokesmen.
Former Fayette County Commissioner Sean M. Cavanagh, who is running with Zapotosky on the “New Democratic Team for Working Class Families,” also voiced support for the hotel occupancy tax prior to answering another question. Cavanagh said he has been all over the world, and other areas implement the tax.
Democratic candidate John “Sonny” Mikita, who like Hardy drew a question that specifically asked about the hotel tax, called it an “occupancy fee” and said it would be “all right” to implement it as long as the county commissioners have control of where the money is spent. “If the fee helps us compete, I am for it but it has to be done right,” Mikita said. He said tourism destinations in the county are one of its most valuable resources.
Democratic Fayette County Commissioner Vincent A. Vicites also addressed the tax in his closing comments, saying he would “consider a hotel tax,” but adding that it “must be fair and focus on marketing.”
Legislation in late 2000 authorized the 45 Pennsylvania counties that did not levy a tax on hotel rooms to do so at up to 3 percent of the room rate, and since that time the only counties that do not have the tax are Fayette, Fulton and Perry. Implementation of the tax in Fayette County is estimated to generate $550,000 annually and would allow the county to stop contributing a $20,000 annual grant to the Laurel Highlands Visitors Bureau.
According to information provided by the Fayette Chamber, since implementing a 3 percent tax in July 2002, Westmoreland County has generated approximately $750,000 annually. Westmoreland County retains 2 percent of that total for administrative purposes ($15,000) and their $30,000 grant to LHVB from their general fund has been discontinued.
In September 2002, Somerset County enacted a 3 percent tax, which generates about $650,000 annually. Somerset County retains 2 percent of that total for administrative purposes ($13,000) and their $21,500 grant to LHVB from their general fund has been discontinued.
According to the chamber information, in Fayette County, a 3 percent hotel tax is estimated to generate approximately $550,000 annually. Fayette County would retain 2 percent of this estimated collection ($11,000) and could discontinue its $20,000 yearly grant to the LHVB.
In addition to the hotel tax revenues being utilized for tourism advertising campaigns and marketing programs through the LHVB, a separate tourism grant program has been established in both Somerset and Westmoreland counties.
Zimmerlink and Democratic candidate John “Toots” Croftcheck did not address the hotel tax issue while answering other questions they had drawn.