AGENDA DATE: 4/20/2022
TITLE:
Title
Public Hearing to Consider the Adoption of an Ordinance to Increase the Transient Occupancy Tax Rate
BODY
SUBJECT/PROPOSAL/REQUEST: Public hearing to consider the adoption of an ordinance to amend County Code Chapter 15, Taxation, Article 9, Transient Occupancy Tax, to increase the transient occupancy tax rate
ITEM TYPE: Regular Action Item
STAFF CONTACT(S): Richardson, Hudson, Bessette, Birch, Sumner, Lin
PRESENTER (S): Nelsie Birch
LEGAL REVIEW: Yes
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: During the 2020 General Assembly session, Virginia counties received enabling authority to increase the taxation amount on several taxing vehicles, including transient occupancy tax. Under the legislation, the limit on the transient occupancy tax was removed while maintaining that revenue attributable to a rate over two percent but not exceeding five percent must be dedicated to tourism marketing.
STRATEGIC PLAN: Mission - To enhance the well-being and quality of life for all community members through the provision of the highest level of public service consistent with the prudent use of public funds.
DISCUSSION: The proposed ordinance (Attachment A) would revise Chapter 15, , Article 9, Transient Occupancy Tax, to increase the tax from five percent to eight percent, effective July 1, 2022.
The proposed ordinance (Attachment A) will be presented to the Board for adoption on May 4, 2022 as part of the FY 23 budget-related ordinances.
BUDGET IMPACT: Increasing the transient occupancy tax rate would increase tax revenues. For FY 23, the budgetary impacts of these taxes are estimated to be $1.7M and are incorporated into the FY 23 proposed budget.
RECOMMENDATION:
Recommendation
Staff recommends that the Board hold a public hearing on the attached proposed ordinance (Attachment A), which will be presented to the Board for adoption on May 4, 2022.
ATTACHMENTS:
A - Transient Occupancy Tax Proposed Ordinance