Revenue down 3 years straight
Published 9:39 pm Monday, October 22, 2012
Revenue from Washington’s occupancy tax declined from fiscal year 2009-2010 to fiscal year 2010-2011 by about $5,000, according to a report released recently by the N.C. Department of Commerce.
A member of the Washington Tourism Development Authority believes the decline is related to a sluggish economy.
The city’s 6-percent occupancy tax generated $239,560 in gross revenue in the 2010-2011 fiscal year, with $232,373 going to the Washington Tourism Development Authority and $7,187 going to the city for providing administrative services to the authority.
In fiscal year 2009-2010, Washington’s occupancy tax generated $244,628 in gross revenue, with $237,295 going to the authority and $7,333 going to the city for administrative purposes. In fiscal year 2008-2009, the city’s occupancy tax generated $255,280 in gross revenue. Of that, the city retained $7,658 for administrative charges while the balance of $247,622 went to the WTDA.
For every $100 spent on lodging such as hotel and motel rooms, the city collects $6 in taxes.
State law dictates that occupancy tax revenues be used on programs intended to bring more people for overnight stays to areas served by agencies like the WTDA. Washington retains 3 percent of the occupancy-tax revenue for WTDA administration while the WTDA receives the balance.
Across the state, municipalities took in $26.4 million in gross revenue from their occupancy taxes, which vary in percentage charged, during the 2010-2011 fiscal year. In the previous fiscal year, they took in $25 million. During the 2010-2011 fiscal year, coun–