COUNTY OF ALBEMARLE

 

EXECUTIVE SUMMARY

 

 

AGENDA TITLE:

Transient Occupancy Tax Ordinance

 

 

SUBJECT/PROPOSAL/REQUEST:

Public hearing to consider an ordinance to amend County Code § 15-901 to conform the transient occupancy tax provisions to new State requirements.

 

 

STAFF CONTACT(S):

Messrs. Tucker, Foley, Davis, Herrick, Wiggans, and Walters

 

 

LEGAL REVIEW:   Yes

 

 

AGENDA DATE:

October 1, 2008

 

     ACTION:     X            INFORMATION:    

 

CONSENT AGENDA:

     ACTION:                    INFORMATION:   

 

 

ATTACHMENTS:   Yes

 

 

REVIEWED BY:

 

 

 

BACKGROUND:

The 2008 General Assembly adopted House Bill 1453 that requires an amendment to Albemarle County’s ordinance regarding the transient occupancy tax.  Prior to July 1st, Albemarle’s enabling authority provided that it and 14 other named counties could impose a 5% transient occupancy tax provided that the portion of the tax rate over two percent was designated and spent for promoting tourism, travel or business that generated tourism or travel in the County.  Under the new legislation, Albemarle is now required to designate and spend any excess over two percent solely for tourism and travel, marketing of tourism or initiatives that, as determined after consultation with the local tourism industry organizations, attract travelers to the County and generate tourism revenues in the County.

 

 

STRATEGIC PLAN:

Goal 5: Fund the County’s Future Needs

 

 

DISCUSSION:

The proposed ordinance revises the transient occupancy tax provisions of the County Code.  The proposed revision is required to comply with recent changes to state law.

 

Effective July 1, 2008, Virginia Code § 58.1-3819(A) included Albemarle among the 34 localities for which “any excess over two percent [of transient occupancy tax] shall be designated and spent solely for tourism and travel, marketing of tourism or initiatives that, as determined after consultation with the local tourism industry organizations, attract travelers to the locality and generate tourism revenues in the locality.”

 

The new state law simply requires consultation with local tourism industry organizations regarding how best to spend certain tax revenues to attract travelers to the County and generate tourism revenues.  It does not require approval by the tourism industry organizations.  Staff anticipates that this requirement will be satisfied by consulting with the Charlottesville Albemarle Convention & Visitors Bureau.  It is not anticipated that it will change how these funds are currently budgeted. This proposed revision neither raises nor lowers the amount of the transient occupancy tax.

 

 

BUDGET IMPACT:

No budgetary impact is anticipated.

 

 

RECOMMENDATIONS:

After the public hearing, staff recommends that the attached ordinance be adopted.

 

 

ATTACHMENT

A - Ordinance Amendment

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