Tourists staying in Jackson County will pay more on their hotel bills starting Jan. 1. Commissioners this week hiked the tax from 3 to 6 cents, the highest room tax rate allowed by state law.

“If this money is spent wisely, I think it might be a good thing,” Dillsboro Inn owner T.J. Walker said Tuesday. “I’m not against it — but I’m not aware of it enough to be for it, either.”

Jackson County will have twice the room tax of most Western North Carolina counties, which largely set the rate at 3 percent. Haywood and Buncombe have 4 percent, Henderson has 5 percent. Only the town of Franklin has a room tax of 6 percent, though outside the town limits in the rest of Macon County it is only 3 percent.

Jackson County commissioners approved the room tax hike this week in a 4-1 vote, with Commissioner Mark Jones of Cashiers casting the lone no vote.

This summer, Jackson County received authorization from the state legislature to increase its room tax up to 6 percent, but had to vote to enact it.

Before voting, county leaders reviewed tourism-related information about neighboring counties. It shows Swain County is leading the pack, with 3,210 tourism-related jobs compared to 560 in Jackson County — a difference likely accounted for by the Nantahala Gorge outdoor scene and Harrah’s Cherokee casino.

Jackson County, like most counties, has seen a decline in room tax collection rates with the recession; starting about four years ago. The past couple of years, room tax collections have been rebounding, but Jackson seems to have faired worse than its neighbors, with bigger drops and a weaker rebound.

“We need to redouble our efforts to attract tourists to Jackson County,” Commissioner Doug Cody said. “Anything we make off tourism helps relieve pressure off of property taxes … these are taxes tourists pay. The citizens of Jackson County will not be burdened with another tax.”

Commissioner Charles Elders described the numbers that show Jackson lagging “troubling.”

Jones, who chairs the Cashiers Area Travel and Tourism, did not specify exactly why he voted against the tax increase. But he did caution his fellow commissioners that “I hope the intent of these monies is to stay within the original intent,” that is, to market and promote tourism.

New state language in the law, Jones said, allows “it to be piggybacked on, it allows for hardscapes — as long as it promotes tourism.” Historically, room tax — under state law — had to be spent on tourism promotion. Now, it can be spent on “tourism-related” developments, which could include sports fields to attract tournaments, greenways or festival venues.

County Manager Chuck Wooten said the original 1987 resolution by Jackson County authorizing a room tax would need modifying before any actions except promotion could take place.

“We don’t have to decide that right now,” Chairman Jack Debnam said.

The formula for distributing the additional room tax is unclear. Currently, 75 percent of room tax collected in Cashiers is used exclusively by Cashiers to promote that area rather than the county as a whole. The rest of the room tax is managed by the countywide Jackson County Travel and Tourism Authority, a public body.

Current tax rates

Haywood County    4 percent

Jackson County    3 percent

Macon County    3 percent, plus town of Franklin imposes an additional 3 percent

Swain County    3 percent

Collection rate comparison

Jackson County

• 2006-2007    $506,574.48

• 2007-2008    $506,004.53

• 2008-2009    $429,378.27

• 2009-2010    $413,939.07

• 2010-2011    $446,339.59

Swain County

• 2006-2007    $305,352  

• 2007-2008    $320,820  

• 2008-2009    $309,802  

• 2009-2010    $335,353  

• 2010-2011    $352,437

Haywood County

• 2006-2007    $935,000

• 2007-2008    $1.04 million

• 2008-2009    $954,000

• 2009-2010    $891,000

• 2010-2011    $962,500

Tourism rebound

Tourism spending is on the rise after three years of stagnation and decline. The North Carolina Division of Tourism, Development conducts an economic impact study every year. It uses the industry standard “Travel Economic Impact Model” to measure the impact of travel, a disaggregated model that looks at everything from lodging and food to retail and recreation. Here’s a decade’s worth of those tourism economic impact numbers.

Haywood

2000    99.9 million

2001    97.7 million

2002    97.8 million

2003    95.9 million

2004    97.69 million

2005    103.4 million

2006    111 million

2007    116.6 million

2008    113.6 million

2009    108.9 million

2010    116.3 million

Jackson

2000    50.5 million

2001    50.1 million

2002    53.6 million

2003    53.5 million

2004    55.7 million

2005    61.7 million

2006    68.2 million

2007    72.6 million

2008    69 million

2009    60 million

2010    62.5 million

Macon

2000    89.7 million

2001    81.1 million

2002    89.8 million

2003    85.9 million

2004    92.2 million

2005    102.5 million

2006    111.1 million

2007    115.4 million

2008    120.5 million

2009    114.5 million

2010    122.1 million

Swain (includes Cherokee)

2000    N/A

2001    199.2 million

2002    214.8 million

2003    216.8 million

2004    213.5 million

2005    222 million

2006    240.8 million

2007    251 million

2008    233.3 million

2009    237.3 million

2010    256.3 million

Jobs directly related to tourism for 2010

Haywood    1,300

Jackson    560

Macon    1,120

Swain (includes Cherokee)    3,210

Haywood County business owners who have been dodging the 4 percent lodging tax will now find themselves facing a crackdown, although some dodgers may not even be aware of their crime.

The lodging tax applies not only to hotels, B&B’s and traditional overnight stays, but also to those who rent out vacation homes or rooms for fewer than 90 days.

A flyer will be included in every property tax bill this year explaining the 4 percent tax vacation home owners should be levying and remitting to the Haywood County Tourism Development Authority.

Many second-home owners who rent their houses on the side for a little extra money often don’t even know that they have to pay, said Lynn Collins, executive director of the TDA.

Collins and her team trawl Websites such as Trip Advisor, Home and Away, and VRBO, which all advertise vacation rentals, complete with address, photos and customer reviews.

Mostly, when people realize they have to pay, they’re pretty good about getting compliant, said Collins.

Collins calls the push to bring in the money an awareness campaign, but her group isn’t just trying to reach the unknowing. They’re going after folks who have simply stopped paying outright, not only by the standard methods of levying fines but also pursuing delinquents through court.

Determining why business owners don’t pay is a little tricky, especially motel owners who know they should and simply don’t.

“It’s a combination of things. Some of it has to do with the economy, some of it has to do with awareness,” said Collins. “For the people who have perhaps quit paying or quit filing, we don’t know.”

For those who use the economy as an excuse to not pay, the reason falls pretty flat.

“This is not coming out of their pockets,” said Collins.

The businesses are simply acting as a pass-through from customer, who pays the extra tax on their overnight room bill, and remitting it to the TDA.

Many businesses, she posits, may not consider the tourism tax quite as mandatory as across-the-board taxes like sales and income tax.

And, said Collins, the tourism authority hasn’t been as staunch about enforcing the laws in the past, which will now change.

Collins said that businesses who begrudge the tax should recognize that its buying them a range of marketing services, even for small, by-owner vacation rentals.

“They get a free listing on the TDA website, they get a free listing in the TDA visitor’s  guide, they get a free listing in the state visitor’s guide and travel website, so there’s a tremendous amount of marketing being done on their behalf,” said Collins.

Regardless of the benefits, paying up is just the law.

“We’re losing a lot of money and it’s not fair to the folks who are following the law and paying the tax for some of their peers to not be doing it,” Collins said.

By Jennifer Garlesky • Staff Writer

A plan to distribute Macon County’s occupancy tax has been formulated, leaving the final approval up to the board of commissioners.

Swain County commissioners are moving forward with a plan to reshape the county’s tourism board despite some opposition.

A proposed 1-cent increase in Haywood County’s tax on overnight lodging and a completely new make-up of its tourism board will likely be approved during this session of the General Assembly.

A push to move the Swain County Chamber of Commerce into a vacant bank building is meeting resistance from some lodging owners because of a proposed room tax increase.

The tax on overnight lodging in Haywood County could be increased next year pending approval by the state legislature.

By Sarah Kucharski • Staff Writer

Late last month Macon County consultant Gary Nicholson sent out 351 letters to local accommodations owners to begin building a database of who is supposed to pay the county’s 3 percent tax on overnight lodging aimed at tourists.

Every few weeks, Scotty Ellis cruises the newspaper classifieds, scans Web sites and scrounges brochures from kiosks at visitor centers looking for vacation homes to rent in Haywood County.