Tourism agency requests increase in tax
Washington County Tourism Promotion Agency has asked Washington County commissioners to increase the county’s hotel occupancy tax by 2 percent, in accordance with a year-old state law.
In 2016, the state Legislature gave tourism promotion agencies across the state the ability to generate additional revenue through an increase in the hotel tax under Act 18.
Since 2001, Washington County has levied a 3 percent hotel tax that is added to hotel room rentals to fund countywide tourism promotion projects and the tourism promotion agency.
In a presentation to the commissioners at their agenda meeting Wednesday, WCTPA President Jeff Kotula noted tourism continues to be one of the largest industries in the county, with more than $760 million in direct visitor spending, and supports nearly 6,000 jobs, according to state figures.
In a news release from WCTPA, Kotula added the new revenue derived from hotel stays would allow the agency to support additional economic and tourism growth. “In approving Act 18 last year, the state Legislature has allowed tourism promotion agencies the ability to generate additional revenues and invest those resources into new initiatives to attract visitors, add overnight stays at our hotels and increase visitor spending in the county,” Kotula said.
He said the tax would be incurred by out-of-town visitors staying at local hotel rooms, not local residents or taxpayers. “Unless our residents are staying at a local hotel, they will feel no effects of this tax,” Kotula said.
He explained neighboring counties such as Westmoreland, Butler, Beaver and Fayette already increased their hotel occupancy taxes in 2016, but the WCTPA board of directors decided to delay its request for an increase until they determined strategic uses for the additional resources.
“The overriding factor the board considered was how to develop and promote tourism attractions that would encourage overnight stays in Washington County hotels and also drive tourists to explore our existing assets. We want to focus on strategic areas such as developing youth/amateur sports markets, promoting our nationally recognized trails and increasing our marketing of our breweries, wineries and distilleries.”
He said the agency also sees potential for building on the success of promoting Washington County’s history and heritage, as well as its entertainment venues such as The Meadows Casino and Monongahela Aquatorium.
Kotula stressed the new resources will be used for marketing, promotion and future asset development.
The agency will not focus the new resources on new capital improvements or campaigns outside of its annual grants program, he said.
Washington County Treasurer Francis King, whose office collects the hotel tax, said later Wednesday the levy generated $1,251,746 for tourism in 2016. That was down nearly $413,000 from the $1,664,638 collected in 2015, which King said was a reflection of last year’s decline in oil and gas drilling activity in the county.
In May, 15 tourist attractions, ranging from the PONY League World Series and Pennsylvania Trolley Museum to the Whiskey Rebellion Festival, received a total of $187,600 in tourism grants for 2017, which were generated from the hotel tax. Commissioners also authorized the agency to commit an additional $203,000 for the annual summer and fall marketing campaign to support tourism.
Kotula said Wednesday the balance of the $1.2 million for this year is being spent on media buys in radio, television and newspapers, as well as in additional support for the PONY League World Series and Whiskey Rebellion Festival.
King estimated if a 2 percent increase is enacted, the hotel tax would generate an additional $250,000 per year, money Kotula said WCTPA would spend on promoting overnight and weekend stays.
Asked Wednesday about the timetable for enacting the hotel tax increase ordinance, Washington County solicitor J. Lynn DeHaven said the matter must be advertised more than seven days before a meeting at which a vote will take place. Next month’s commissioners meeting is scheduled for 10 a.m. Aug. 17, in the public meeting room of the Courthouse Square office building.
Staff writer Barbara S. Miller contributed to this report.