Hotel tax plan advances
The Fayette County commissioners took action Thursday to begin the steps to impose a 3 percent hotel occupancy tax. In a 2-1 vote, the commissioners set next month’s meeting as the time when approval would be given for both the implementation date and the plan outlining how the proceeds would be used.
The tax, which will add 3 percent on the cost of hotel rooms in the county once it is approved, is expected to bring in $750,000 annually. A memorandum of understanding with funding particulars would be written prior to next month’s meeting for approval.
Voting in favor of the action for the tax were commissioners Vincent Zapotosky and Vincent A. Vicites, with Commissioner Angela M. Zimmerlink voting against it.
The motion was approved following a lengthy discussion in which Zimmerlink accused her fellow commissioners of holding a meeting to discuss the tax in violation of the Sunshine Law and excluding some businesses from participation in discussions on how to split up the proceeds of the tax.
Zimmerlink said although no action was taken at a Jan. 31 informational meeting, the result of the meeting led to what will be made into a memorandum of understanding.
“You had a meeting and I believe it was a violation of open records and Sunshine Law,” Zimmerlink said.
She added that only one higher learning institution was present – Penn State Fayette, the Eberly Campus – that is slated to receive 25 percent of the proceeds of the tax for five years to set up a hospitality/restaurant institutional management program. She also said only one hotel – Nemacolin Woodlands Resort and Spa in Farmington – was present as well.
Trey Matheu, general manager of Nemacolin Woodlands, commented Thursday that the resort is opposed to such a “pass-along tax,” but believes a public/private partnership that would expand tourism and help nonprofit business and provide funding for a program at Penn State would be a good use of the money. Matheu said Nemacolin would support the tax only if 50 percent of the proceeds goes to the Laurel Highlands Visitors Bureau (LHVB); 25 percent is used only for nonprofit organizations for a grant program and 25 percent is allocated to Penn State Fayette for five years for the new program.
Matheu reiterated the proposed uses for the funds that were given during Tuesday’s agenda meeting by Annie Urban, executive director of the LHVB.
Penn State chancellor Dr. Emmanuel Osagie said starting the new management program is “thinking outside of the box.”
“I don’t see winners or losers here,” Osagie said.
He added that the new program would benefit residents and businesses of the county.
Zimmerlink said she prefers to call the tariff a “tourist tax,” adding that winners and losers are being selected. She said no other institutions of higher learning would be the beneficiary of such a program, so they are losers.
Zapotosky disagreed, saying he thinks everyone is a winner. He said the hospitality/restaurant institutional management program at Penn State’s main campus is one of the best in the country.
“This is Fayette County initiating instead of being forced to follow,” Zapotosky said of using the money for such a program.
Osagie said Penn State is the only four-year institution of higher learning in the county.
Zimmerlink said it all “sounds good” but the purpose of the tax was to market and promote Fayette County. She said if small businesses can’t access grant money, they are starting on the wrong foot by segregating against them and only allow nonprofit organizations to obtain grants. The proposal calls for using the grants for tourism promotion and not “bricks and mortar” projects.
“What about historical societies that would use money for infrastructure,” Zimmerlink said.
Zapotosky said the Jan. 31 meeting was informational only and all three commissioners were invited. He said Zimmerlink’s questions could have been posed and answered three weeks ago, at that meeting. He acknowledged that a public meeting could be held, but said it is time to take action.
Zimmerlink said she would continue to not attend meetings such as those.
“When entities such as county commissioners gather together for the purpose of discussing the mechanics of the hotel tax and not in an open forum that is not open government. These types of discussion should occur at this type of forum,” Zimmerlink said.
She added that she would not go to the Fayette Chamber of Commerce or Nemacolin Woodlands for meetings just because she is invited.
“Get used to it, I will continue for the next four years to bring the discussion here and have it at a public forum,” Zimmerlink said.
Saying he disagreed and pointing out they have disagreed a lot over the last four years, Vicites said the commissioners have to do their due diligence, adding there was nothing wrong with an informational meeting.
“I disagree it is a violation of anything; we got input,” Vicites said.
He added that he would meet with anybody on any issue if requested.
“This is a work in progress,” Vicites said.
Vicites pointed out that Somerset and Westmoreland counties do not retain as high a percentage of the proceeds as 50 percent to use in their respective counties. He said only two other counties in the state do not impose such as tax, which was permitted by a law passed in 2000.
“I think it’s a good plan but we still have to tweak it and make it better,” Vicites said.
Zimmerlink said her point is it was selected input.
“These decisions were made and I think we should have received input from other hotels and institutions,” Zimmerlink said.
Vicites said they can’t stall and delay, they have to move forward.
“The bottom line is people coming to Fayette County will pay this tax and if we funnel it back in, it only helps Fayette County’s future. I don’t’ see anything but good in this. It’s a win, win, win,” Vicites said.