New & Proposed Travel Taxes Dot Election Year

A number of new or proposed tax initiatives across the country underscore the fact that during election years, public officials are more likely to levy hospitality taxes on visitors, and less likely to pick on local residents for the needed funds.

"From the standpoint of an elected public official, it's basically a free ride; you're taxing a group that can't get back at you," said Harvey Newman, professor of urban policy studies at the Andrew Young School of Policy Studies at Georgia State University in Atlanta.

It's often what the revenue will go to that determines the degree of support from local hospitality officials.

"If a municipality is seeking to build a new convention facility, that's one thing," Newman said. "If it's just an effort to increase the general revenue stream, that puts them at a disadvantage against other cities."

Hospitality taxes also can pit areas within the same metropolitan location against one another. "If the increase is too high, then the [higher-priced] center of the city becomes less attractive," Newman said.

Here is a sampling of recent tax increases and proposals:

New York: The Hotel Association of New York City recommended a new $1.50-per-night tax to fund an expansion of the Jacob K. Javits Convention Center.

San Diego: Several groups have endorsed a proposition to increase the hotel and motel tax by 2.5 percent in order to raise money for public safety and road improvement needs.

Osceola County, Fla.: The room tax in this county, which contains part of Walt Disney World, will increase from 6 percent to 7 percent on July 1 to finance the development of a public convention center.

Fairfax County, Va.: The chamber of commerce in this Washington, D.C. suburban area proposed doubling the hotel tax from 2 percent to 4 percent. The revenue would fund tourism marketing and the local convention and visitors bureau.

Spokane County, Wash.: County commissioners approved a resolution for a new tax of 50 cents to $1.50 per night, depending on a property's location. The money would fund tourism promotion. Spokane's existing hotel tax is 10.1 percent, with 4 percent going to fund tourism-related activities.

Contact Loree Stark at lstark @meetingnews.com.