County Seeks OK to Use Room Tax Funds on Airport

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If the state legislature approves, part of Moore County's tourism tax could soon be applied to the airport.

The board of commissioners on Tuesday voted to ask state Rep. Jamie Boles to introduce a local bill enabling the county to apply a portion of the 3 percent room occupancy tax toward the county's match for federal airport grants.

The proposal does not call for an increase in the tax.

"I have talked to Rep. Boles, and he is not in favor of any increase in the tax rate," Board Chairman Nick Picerno said.

Room tax collections are presently used solely to support tourism promotion through the county's Convention and Visitors Bureau.

The commissioners want to avoid using property tax money to support airport improvements. Their reasoning for wanting to use funds from the room tax is that the airport is a strong tourism factor for the county.

Picerno said he had talked to Boles about using less than 1 percent of the tax to reimburse the county's general fund budget when the county must appropriate matching funds to draw down grants from the Federal Aviation Administration.

The FAA awards grants for safety improvements at public airports but requires a 5 percent match from the local government and a 5 percent match from the state.

"The goal is to take care of our FAA match without using taxpayer money," Picerno said.

Unfortunately, Picerno added, the change would take some money away from tourism promotion and operations. But he said that loss would be balanced by meeting a specific need.

Commissioner Craig Kennedy countered that the loss could be turned into an asset for the Convention and Visitors Bureau if business picks up at the airport.

He said that the airport brings a heavy influx into the county for tourism purposes, and this affects the size of room tax collections. Kennedy said this would be especially true if airport improvements can be used to attract passenger service back to the airport.

The three commissioners debated whether they should wait to take the vote until the other two board members could be present. However, Commissioner Larry Caddell said all five members had reached consensus on the issue at a previous meeting and he saw no need to delay a vote.

Vice Chairman Jimmy Melton and Tim Lea, a former chairman, were absent because of illness.

Caddell made the motion to ask Boles to introduce the local bill, Kennedy made the second, and approval was unanimous.

Earlier in the meeting, the commissioners heard a presentation on the county's tourism product development plan by the Convention and Visitors Bureau Feasibility Committee. Caleb Miles, president and CEO of the bureau, led the presentation.

The plan outlines ideas to increase tourism by encouraging capital improvements and boosting marketing tools.

Ideas for increasing tax revenue were advanced along with information that Moore County's 3 percent tax is among the lowest rates for top tourism counties.

Swain is the only other county among the top 15 counties with a 3 percent tax rate. The rate is 6 percent in Wake, Guilford, Forsyth, Durham, New Hanover, Cumberland, Watauga and Craven counties. It is 5 percent in Dare, Brunswick, Cabarrus, Carteret, Nash and Catawba counties.

Mecklenburg, with 8 percent, has the highest rate, but it sunsets with completion of the NASCAR Hall of Fame. Buncombe County, with a 4 percent rate, is proposing an increase.

Under the latest state law, a tourism tax cannot be higher than 6 percent.

The tourism delegation did not directly request an increase in the tax but did suggest that the commissioners consider meeting with mayors and other municipal officials to discuss their tourism needs.

The Moore County Airport, which is owned by the county, is self-sufficient in the sense that operational funding is not part of the county's general fund budget. The airport generates income through sales of aviation fuel, hangar rental fees, pilot instruction and other services.

Revenue has dropped dramatically in recent years because of the economic downturn and the loss of passenger service.

In the meantime, the airport authority faces heavy capital improvement costs to upgrade facilities in time for the back-to-back U.S. Open tournaments coming here in 2014.

Contact Florence Gilkeson at florence@thepilot.com.

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Comments

oldtimer 1 year, 2 months ago

Couldn't agree more!!!! Typical politician's reaction - pull from one pocket today, tax the other tomorrow. [Maybe no one will notice -or, we can blame it on previous commissioners.] If a fat cat can afford to fly his Lear directly to Pinehurst, does anyone really believe he won't pay a higher landing/arrival fee? It's an incidental cost to the flyer, but an irresponsible additional burden to put on the back of the taxpayers.

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Easygoing 1 year, 2 months ago

All these politicians told us how they wanted smaller government and now they are going to the FAA looking for matching funds. What a bunch of hypocrites! Where do they think this Federal money comes from? In the Pilot front page there are 2 examples of local organizations looking for Federal dollars. This one trying to get money from the FAA and the article about AEDs where the county gets $100,000 from the U.S. Department of Health and Human Services. Didn't our Representative Coble just vote to slash funding from these agencies?

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Bflat 1 year, 2 months ago

People should have been paying attention to when the Federal Sized JAIL was being ram rodded through and that 55 million limited obligation bond to fund its construction and some public utilities. 4 stories high for it and 3 stories for the public safety complex, all with 146998SF bigger than walmart. Now they cannot find a little money in their budget for the little bitty airport that has tried and failed numerous times to get commercial flights established here.

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bigtoe 1 year, 2 months ago

The airport is a blackhole financially for the citizens of Moore County. Quit funding this rich mans toy. There is no way this airport generates the revenues from usage and sales to justify the tax dollars being spent to keep it afloat. Raise user fees on the users of the facilities and not the general tax payers who never use it. The government should quit funding these special projects with the hope of generating tourism. It has not happened in 35 years and it will not for the next 35 years.

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SH59 1 year, 2 months ago

This is ridiculous! The last thing we need is a cut in tourism promotion. The CVB depends on that room tax to promote this area and it's attractions. The tax so low it hardly allows them to do their job. The room tax should have been increased to cover the needs of the airport, not take it away from a very valuable tourism organization that is responsible for keeping out local economy working as well as they can. This is very poor governing of our community.

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None 1 year, 2 months ago

I hope that taxpayers will have an awakening sooner than later. For way too many years, taxpayers have been apathetic to local government spending policies that will affect this county for decades to come. When Colin McKenzie was chair and a vote to purchase the Grimm land for a record 1.5 million dollars plus interest, that decision should have thrown up red flags all over this county. Fast forward to today with a giant hole in the grown with artesian wells flowing under the fragile ground where the new federal prison is being built. There are subliminal issues facing Griffith Company now with the wetlands being destroyed, and the new structure being built on fill placed there by Johnnie Grimm over the years. The county's decision to build on that property will create a flow of new and expensive change orders as I predicted months ago. The additional costs could easily rise to 10% or more before that project is ready for occupancy. It’s no wonder that Dennis Brobst has decided to abandon ship before all of Carthage becomes one giant sinkhole, and from the looks of the site, not too far into the future. I am still waiting on GOP George Little to speak up on the number of jobs created locally by the out of town contractor that he was so eager to point out to Pilot reporters. Come on George, just a few numbers please. See the posts on the airport budget that I copied and pasted to the Boles request for funds link at the top of this blog. The airport is the only brainchild of the commissioners that is showing a million dollar reserve balance sheet. With over a half-million dollars in salaries for part-time, help. Go figure...why they want more for another golf tournament, can’t the tour players Lear Jets land on the existing runway? If not just have, 15-501 blocked off for a touch and go landing to unload the stars of the Pinehurst Show.

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CNMT 1 year, 2 months ago

I agree with those who have posted suggesting they raise the fees at the airport. Why should everyone who comes to Moore County and rents a hotel room help pay for improvements to an airport they didn't use or see? And the taxpayers of Moore County do not need their taxes raised to pay for improvements to the airport. We already have to pay more for gas to get to Raleigh or Fayetteville when we fly somewhere - and all because we have no commercial service out of Southern Pines. If I thought paying taxes to help support the airport would bring real commercial service to the area, it might be worth it. But in the 9 years I have lived here there has only been one commercial airline here and it had one flight a day to Atlanta and one flight back from Atlanta. And those flights were not really convenient for most people as you had to spend the night in Atlanta to catch the early morning flight back to Southern Pines. Let's spend those tourism dollars in a way that benefits all the citizens of Moore County, not just those rich enough to land their private jets and planes at SOP.

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SH59 1 year, 2 months ago

CNMT, why should Moore county room tax pay for anything other than for the CVB to promote this area? If they want to run themselves as a viable business then they need to come up with the money themselves. If it has to be the room tax then it should be increased to the level of other counties. I don't understand why Moore County's room taxes are so low.

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