Washington’s occupancy-tax revenues increased in 2007

Published 2:55 pm Thursday, August 7, 2008

By Staff
In six years, city has taken in $1,173,870
By MIKE VOSS
Contributing Editor
Occupancy-tax revenues for Washington have increased in six straight fiscal years.
The latest occupancy-tax figures — for fiscal year 2006-2007 — show that Washington collected $237,192 compared to $235,869 in the previous fiscal year. During that six-year period, the city has taken in $1,173,870.
Of the $237,192 collected for fiscal year 2006-2007, the city kept $7,116 for administrative charges. The remaining $230,076 was turned over to the Washington Tourism Development Authority. Under state law, occupancy-tax revenues must be spent on programs and projects designed to bring more people for overnight stays or longer visits to areas served by those agencies.
Washington’s occupancy tax is 6 percent, meaning a hotel room that rents for $100 brings in $6 in occupancy-tax revenue.
In Washington, most of the occupancy-tax revenue goes to the Washington Tourism Development Authority. The city gets 3 percent of the revenue for performing administrative duties for the WTDA. Hyde and Martin counties also take their shares for performing administrative duties for their respective tourism-development agencies, but most of the revenue goes to those agencies. Washington County keeps all of its occupancy-tax revenues.
David Gossett, a member of the Washington Tourism Development Authority, said Washington and Beaufort County are benefiting from the WTDA’s effort to increase tourism in the area. He said the way Lynn Lewis, Washington’s tourism-development director, is overseeing the WTDA’s marketing strategies continues to produce positive results.
Lewis said the modest increase from 2006 to 2007 comes as no surprise.
Increases in occupancy rates and occupancy-tax revenues during the next several years likely will remain modest, she said.
The tourism authority’s directors realize the city’s lodging establishments are reaching capacity, meaning more rooms are needed to make it possible for occupancy-tax revenues to continue to increase, Lewis said.
Hyde, Martin and Washington counties have seen their occupancy-tax revenues go up and down during the six-year period that begins with the 2001-2002 fiscal year and ends with the 2006-2007 fiscal year, according to the N.C. Department of Commerce’s Division of Tourism, Film and Sports Development. Beaufort County has no occupancy tax.
Hyde County collected $397,214 in occupancy-tax revenue in fiscal year 2006-2007. In the previous fiscal year, the county took in $355,932 in occupancy-tax revenue. From 2001-2002 through 2006-2007, the county took in $2,039,433 in occupancy-tax revenue.
Hyde County kept $39,721 of the $397,214 for administrative charges. The remaining $357,493 was allocated to the county’s tourism-development agency.
Hyde County, with most of its occupancy-tax revenue coming from lodging establishments on Ocracoke Island, has an occupancy tax of 3 percent.
The resort island of Ocracoke, chosen last year as having the best beach in the United States, generates most of Hyde County’s tax-occupancy revenue, but not all of it.
Outdoors enthusiasts visit the county’s mainland to take advantage of its hunting, fishing and other related opportunities such as visiting Mattamuskeet National Wildlife Refuge. Many people visit to view migrating waterfowl.
Martin County collected $206,376 in occupancy-tax revenue for fiscal year 2006-2007. During the previous fiscal year, the county took in $122,324 in occupancy-tax revenue. From 2001-2002 through 2006-2007, Martin County collected $751,053 in occupancy-tax revenue.
Of the $206,376 collected in fiscal year 2006-2007, the county kept $6,191 for administrative charges. Martin County Travel and Tourism received the remaining $200,185.
Martin County’s occupancy tax is 6 percent.
Martin County officials attribute a majority of the increase in the county’s occupancy-tax revenues and other tourism-related revenues to the growth of the Senator Bob Martin Eastern Agricultural Center in Williamston and the increasing number of events held there that last for several days. Those events with longer durations mean more people are extending their stays in lodging establishments in the county and neighboring counties.
Washington County collected $103,116 in occupancy-tax revenue during fiscal year 2006-2007, down from the previous fiscal year’s take of $105,220 in occupancy-tax revenue. From 2001-2002 through 2006-2007, the county took in $606,324 in occupancy-tax revenue.
Washington County’s occupancy tax is 6 percent.