Archive: Business & Technology

Leaders of the County’s Strategic Tourism Planning Board (STPB) today urged that the County Legislature not seek to change the state law governing use of county room tax funds and to continue to designate the funds exclusively for uses that foster activity supporting county tourism.

The Legislature’s Planning, Development and Environmental Quality Committee invited input from the advisory board, as it begins to review a proposal submitted by Legislator Mike Hattery, which would seek a change in the state law to permit the funds to also be used for economic development not related to tourism.

The STPB maintains that the current room tax-funded Tourism Program is a successful, self-sustaining economic development program that has stimulated growth in the local tourism industry, produced local jobs and generated tax revenue since its inception, and that it is key to the area’s unique quality of life.  Board members told the Committee that designating room tax dollars for other purposes would be unwise, especially in light of challenges created by the decline in consumer confidence in today’s economy and the feared loss of significant state support for tourism and the arts.

Recognizing county government for its vision and foresight in establishing the room tax program, STPB board member Scott Wiggins predicted that broadening the permitted uses would set the precedent for future Legislators “that room tax is a fund that can be raided,” and would place the County “on an extremely slippery slope.”

While the tourism program remains strong, Tompkins County Convention and Visitors Bureau Director Fred Bonn told the committee that economic effects are beginning to be felt.  Room occupancy rates, for example, are down nearly two percent from the previous year.

Tompkins County Chamber of Commerce president Jean McPheeters said the county’s challenge will be to protect what it has, while ensuring a way to support economic development seriously and striving to work in partnership.  She praised the committee for recommending, earlier in the meeting, that the County Legislature urge that New York State restore civic facilities legislation, which would enable the county’s Industrial Development Agency once again to issue tax-exempt bonds for economic development efforts by non-profit entities.  That program sunset a year ago.

The Committee will continue its study of the room tax issue before reaching any recommendation.  The Legislature’s Budget and Capital Committee is expected to take up the matter later this month.

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