Hotel tax shouldn’t go to for-profits
Government should always be of the people, for the people and by the people, and so it is important to allow the voices to be heard when considering policies and opportunities that will impact the growth of this county. The public meeting held on Thursday, June 19, regarding the use of the hotel tax funds, was an opportunity for the people to be heard. We certainly appreciated the 50 people who attended, feeling passionate about the decisions being made, and taking the time to make their concerns known. Please understand that as your elected county commissioners, we have heard your voice. We do not make decisions lightly or hastily.
Two major issues surfaced during the meeting and we would like to address each individually. Comments were made regarding the inclusion of for-profit, tourism related businesses in the grant program.
Please understand that we want to see every Fayette County business have the opportunity to succeed. Throughout our initial discussions, we took the time to learn about the successes and difficulties when granting funds to for-profit businesses. It is a fact that grant funds are typically not available to for-profit entities.
There is good reason. When funds generated by a tax are given to a private entity there is no reporting requirement. This is not a trust issue. e have every faith in the world that our businesses will do everything right. However, because this is an uncertain world we feel a responsibility to protect the revenue. The fact is that the tax return for a for-profit business is and should be private information. On the other hand, a not-for-profit or non-profit organization is held to a different set of requirements. The tax return filed by these groups is called a Form 990 and those documents are public record and easily accessible.
Our goal is truly not to exclude the for-profit business but rather to build partnerships that are beneficial for everyone. Let us give you an example – Let’s say that there were five or six for-profit tourism businesses who where in need of destination signage. As for-profit businesses, theoretically they would not be an eligible grant recipient but we would encourage those five or six businesses to come together with their matching dollars (one-half the total of their specific need) and form a partnership.
They would then seek the assistance of one of our many non-profit organizations who would apply for the grant funding. The monies would be received by the nonprofit who would administer the project and handle the grant funds. This granting process works because nonprofits are held to a reporting and financial standard that allows the grant committee, the commissioners and the public to be assured that the funds are being spent for the approved project.
Comments were also heard regarding a visitor center specifically for Fayette County. We acknowledge the importance of the need to have tourist information readily available to visitors and residents alike.
At this time we feel that this will be best accomplished by providing several visitor information locations throughout the county. We intend to start to work immediately with the Fayette County Tourism Alliance to create satellite information area at strategic locations throughout the county utilizing existing sites. This is especially important because Fayette County has many significant attractions that are diverse and wide spread and several main arteries that lead visitors to our area.
Combining this with current efforts to educate those who work at lodging facilities, restaurants and other places that travelers visit will be much more efficient and far more cost effective than spending much of the revenue generated by the hotel tax on the building, staffing and operation of one visitor center.
As your Fayette County commissioners, we work hard every day to bring to this county every opportunity needed to grow and prosper. The enactment of the hotel tax has been and continues to be a learning experience. The memorandum of understanding between the county and the Laurel Highlands Visitors Bureau is not carved in stone.
It will be reviewed periodically and can be changed to meet the needs of our tourism community. What we know is that the hotel tax revenue will provide for expanded marketing, outside this area, of our many tourism-related assets, and will also provide opportunities for our local tourism related businesses to access funds that can enhance their individual destinations. This makes it a win-win for all of us.
Vincent Zapotosky and Vincent A. Vicites are Fayette County commissioners.