The Marion City Council approved a measure Monday night that would double the city's bed tax adding a 5 percent hotel "use" tax to the existing 5 percent hotel "occupation" tax.
The new 10 percent local tax compares with Carbondale's 8 percent rate and Mount Vernon's 5 percent plus $2/night rates. Adding the state's 6 percent rate, tourists in Marion would pay an overall rate of 16 percent.
The Southern reports that the funds would help the city pay for a new community center and other projects.
Showing posts with label bed tax. Show all posts
Showing posts with label bed tax. Show all posts
Carbondale Times Highlights Issues in CCTB
Geoffrey Ritter at the Carbondale Times may be one of the best investigative reporters in Southern Illinois right now. A long story a few years ago in the Herrin Independent about the issues behind Herrinfesta finally explained to me the issues facing the festival. Now, he's digging into the Carbondale Convention and Tourism Bureau.
For those not knowing what was happening behind the scenes, this reveals it.
I'd seen where the the mayor and city council had expressed concerns in the Southern Illinoisan, and for the first time there were cracks in the normal favorable coverage of the bureau. In the end, the city cut $50,000 worth of funding this year.
Ritter digged deeper and reports on the nepotism issues long known to those in the tourism world.
Eight seats on the tourism board are up as of April 30. The Times' headline (print edition only) indicated the mayor planned to name new people.
For those not knowing what was happening behind the scenes, this reveals it.
I'd seen where the the mayor and city council had expressed concerns in the Southern Illinoisan, and for the first time there were cracks in the normal favorable coverage of the bureau. In the end, the city cut $50,000 worth of funding this year.
Ritter digged deeper and reports on the nepotism issues long known to those in the tourism world.
The Carbondale Convention and Tourism Bureau director’s practice of steering jobs and taxpayer funding to her daughter stretches back years, a continuing investigation by the Times has revealed, and totals at the very least in the tens of thousands of dollars.
In addition, the practice of familial patronage has extended to the very center of major initiatives undertaken over the past decade by CCTB Executive Director Debbie Moore, among them the establishment of a tourism curriculum at John A. Logan College and the formation of a culinary tourism project initially operated out of SIU.The rest of the article can be found here. The story builds on their earlier coverage in February.
Eight seats on the tourism board are up as of April 30. The Times' headline (print edition only) indicated the mayor planned to name new people.
City Council Member Jane Adams was very critical of agency at public meetings in February as D. W. Norris reported in the Southern.Adams had more on her blog earlier this month.
"A number of people tell me they have contacted CCTB and never get called back," Adams said.
Adams also wondered why CCTB's budget was not more in depth as far as expenses, at one point saying, "I guess I just don't understand your budget."
...Adams was also critical of CCTB's website, which has a low number of visits, non-functioning tools and a calendar with few events listed.
"In terms of tourism websites ... it's an embarrassment," Adams said.
The issue of funding the Carbondale Convention and Tourism Bureau (CCTB) has brought me more mail and phone calls than any other issue I have written about. Almost all of these constituents called on Council to defund the agency, and many have detailed complaints about how the Bureau has been run. I have, frankly, been surprised by the depth of feeling this issue has aroused.For once I won't comment further.
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Mount Vernon Tourism Numbers Up from 2009
Despite all the hoopla between Mount Vernon and Marion over the new STAR Bonds law, it's the King City who's had a better start to 2010 in terms of tourism than Williamson County.
Bed tax collections are up 3 percent for the first four months of 2010 in Mount Vernon compared to the same period in 2009. Marion and Williamson County has seen a 15 percent drop during the same time period.
Mount Vernon saw collections rise from around $176,000 to $182,000 while Williamson County suffered a drop from more than $235,600 down to just over $200,400. (However, one operator, Motel 6 has not paid January, March and April payments which should be at least $6,000 based on past years).
Mount Vernon Tourism Director Bonnie Jerdon told the Register-News that when compared to the same time in 2008 before the recession hit the tax receipts are down only $1,200.
Going back two years show receipts in Williamson County down just over $13,500 or about 6 percent compared with the first four months of 2008, though if the delinquent hotelier pays, then that amount would be cut by more than half.
The City of Mount Vernon charges a 5 percent bed tax which is split 60/40 with the tourism department and the city. The city also uses its home rule power to impose another $2 a night surcharge on room rentals.
(I believe that the 2 percent the city keeps is used for operate the city's west side municipal building near Holiday Inn where the tourism bureau and chamber of commerce have their offices.) By state law all of the 5 percent is supposed to go to tourism efforts. Historically, Mount Vernon has barely skirted around such requirements and occasionally has completely ignored them.
In Williamson County, the 5 percent bed tax is split 40/60 between the Williamson County Tourism Bureau and the Williamson County Events Commission, with the latter's share going to pay off the bonds used to finance the construction of the Williamson County Pavilion.
Marion hotel operators contribute the 2010 drop to the national economy, the colder-than-normal temperatures in Florida that discouraged some of the snow birds to travel south, or at least delay their travel; and a surge of business during the winters of 2008 and 2009 when ice storms caused major power outages in southernmost Illinois and western Kentucky and sent hundreds of residents north searching for places to stay with electricity and heat. This year's winter proved to be much milder.
Hotel and motel operators within the city limits of Marion earn about 85 percent of the bed tax revenue generated in the county.
Bed tax collections are up 3 percent for the first four months of 2010 in Mount Vernon compared to the same period in 2009. Marion and Williamson County has seen a 15 percent drop during the same time period.
Mount Vernon saw collections rise from around $176,000 to $182,000 while Williamson County suffered a drop from more than $235,600 down to just over $200,400. (However, one operator, Motel 6 has not paid January, March and April payments which should be at least $6,000 based on past years).
Mount Vernon Tourism Director Bonnie Jerdon told the Register-News that when compared to the same time in 2008 before the recession hit the tax receipts are down only $1,200.
Going back two years show receipts in Williamson County down just over $13,500 or about 6 percent compared with the first four months of 2008, though if the delinquent hotelier pays, then that amount would be cut by more than half.
The City of Mount Vernon charges a 5 percent bed tax which is split 60/40 with the tourism department and the city. The city also uses its home rule power to impose another $2 a night surcharge on room rentals.
(I believe that the 2 percent the city keeps is used for operate the city's west side municipal building near Holiday Inn where the tourism bureau and chamber of commerce have their offices.) By state law all of the 5 percent is supposed to go to tourism efforts. Historically, Mount Vernon has barely skirted around such requirements and occasionally has completely ignored them.
In Williamson County, the 5 percent bed tax is split 40/60 between the Williamson County Tourism Bureau and the Williamson County Events Commission, with the latter's share going to pay off the bonds used to finance the construction of the Williamson County Pavilion.
Marion hotel operators contribute the 2010 drop to the national economy, the colder-than-normal temperatures in Florida that discouraged some of the snow birds to travel south, or at least delay their travel; and a surge of business during the winters of 2008 and 2009 when ice storms caused major power outages in southernmost Illinois and western Kentucky and sent hundreds of residents north searching for places to stay with electricity and heat. This year's winter proved to be much milder.
Hotel and motel operators within the city limits of Marion earn about 85 percent of the bed tax revenue generated in the county.
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Marion's Hotel Industry Surges in 2009
Some thoughts on 2009 lodging in Marion
Despite the bad economy last year, tourism grew in Marion and Williamson County at least in terms of hotel taxable receipts.
Bed tax collections for the 25 active lodging establishments in the county grew by 15.5 percent last year over 2008 to $791,741.06. That was the best since 11.3 percent growth in 2005.
The bed tax receipts show tourists and travelers spent more than $15.8 million directly on lodging last year in the county with all but about 15 percent of that spent directly with establishments inside the Marion city limits.
In both 2005 and 2009, much of the growth could be attributed to a major new hotel being added to the mix. Country Inn & Suites opened in December 2008. Previously, Fairfield Inn had been the last player added.
With Country Inn, the Big 6 hotels in Marion became the Big 7 and collectively increased their market share from 78.2 percent to 79.1 percent, but the new hotel didn't cannibalize its competitors as some had feared. The other six major hotels collectively saw their taxable receipts grow by 6.6 percent in 2009 versus just a 1 percent jump in 2008.
All sectors but the oldest motels in the county saw growth last year.
Overall the Big 7 were up 16.8 percent, the mid-level motels (both the small chains and independents) were up 19.1 percent, and the specialty lodging category of bed and breakfast inns, cabins and vacation rentals grew by 41 percent thanks to new units being added.
The lodging operators inside the Marion city limits attributed for 84.8 percent of the market share.
All lodging operators in the county from the smallest vacation house rental up to the largest hotels pay a bed tax equal to 5 percent of their receipts to the county which is split 40/60 between the Williamson County Tourism Bureau and the Williamson County Events Commission (the funds to the latter group goes to pay the financing costs for the Williamson County Pavilion). The actual receipts taken in by the hotels are actually greater than the taxable receipts as rentals for more than 30 days are not covered by the bed tax.
Despite the bad economy last year, tourism grew in Marion and Williamson County at least in terms of hotel taxable receipts.
Bed tax collections for the 25 active lodging establishments in the county grew by 15.5 percent last year over 2008 to $791,741.06. That was the best since 11.3 percent growth in 2005.
The bed tax receipts show tourists and travelers spent more than $15.8 million directly on lodging last year in the county with all but about 15 percent of that spent directly with establishments inside the Marion city limits.
In both 2005 and 2009, much of the growth could be attributed to a major new hotel being added to the mix. Country Inn & Suites opened in December 2008. Previously, Fairfield Inn had been the last player added.
With Country Inn, the Big 6 hotels in Marion became the Big 7 and collectively increased their market share from 78.2 percent to 79.1 percent, but the new hotel didn't cannibalize its competitors as some had feared. The other six major hotels collectively saw their taxable receipts grow by 6.6 percent in 2009 versus just a 1 percent jump in 2008.
All sectors but the oldest motels in the county saw growth last year.
Overall the Big 7 were up 16.8 percent, the mid-level motels (both the small chains and independents) were up 19.1 percent, and the specialty lodging category of bed and breakfast inns, cabins and vacation rentals grew by 41 percent thanks to new units being added.
The lodging operators inside the Marion city limits attributed for 84.8 percent of the market share.
All lodging operators in the county from the smallest vacation house rental up to the largest hotels pay a bed tax equal to 5 percent of their receipts to the county which is split 40/60 between the Williamson County Tourism Bureau and the Williamson County Events Commission (the funds to the latter group goes to pay the financing costs for the Williamson County Pavilion). The actual receipts taken in by the hotels are actually greater than the taxable receipts as rentals for more than 30 days are not covered by the bed tax.