Pless files bill to abolish Haywood room occupancy taxes
Taxes collected by the Haywood TDA currently total around $3 million each year.
Visit Haywood photo
Today in the North Carolina General Assembly, Haywood County Republican Rep. Mark Pless filed a bill that would strip the county of its ability to levy room occupancy taxes.
“I think they are mismanaging that money,” Pless told The Smoky Mountain News. “It’s tax money and it’s accountable, but they don’t seem to be accountable; they just do what they want to do, so it’s time to go.”
Many North Carolina counties assess a tax on each room rented — whether hotel, motel, Airbnb or other such lodging establishment — for every night they’re rented. Those taxes are collected, accounted for and spent by a local tourism development authority that, generally speaking, puts the bulk of the money toward destination marketing efforts designed to put heads in beds.
In some places, like Haywood County, some of that money is spent on capital projects that not only help attract and entertain tourists but also serve residents.
North Carolina tourism development authorities derive their ability to operate from the General Assembly, which can also strip them of that authority.
The bill stems from an incident last year when the Haywood TDA awarded a grant to an organization looking to create a “diversity passport” listing LGBTQ+ friendly businesses in the county. A minor uproar ensued, mostly from businesses that could have religious opposition to such a directory but also from Pless. The grant was ultimately rescinded.
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Pless said he was satisfied with how that situation was handled, but at the same time, he requested years’ worth of data on how the TDA had spent money in previous years.
“I found some things that were very concerning,” he said, citing murals in Canton, Frog Level and Waynesville and a sign in Clyde. “That’s not what that’s intended for. That money is supposed to bring people to Haywood County. I understand that they want to use it for local things, but that’s not what this is for.”
Haywood County’s current room occupancy tax rate is 4%. Since its inception in January 1984, the TDA collected exactly $29,980,815 in room occupancy tax revenue through March 2022 — the first year the TDA began making substantial grants for local projects that totaled $500,000.
In subsequent years, collections have averaged roughly $3 million a year, a portion of which has continued to be used for capital projects like the murals, as well as a trail system at Haywood Community College, improvements to Lake Junaluska’s facilities and an auxiliary parking lot for Maggie Valley’s festival grounds.
“It not that the money needs to go away, it just needs to be spent for the proper reasons,” Pless said.
As what’s called a “local bill,” it would need the assent of the local delegation — in this case, Sen. Kevin Corbin (R-Macon) and Sen. Ralph Hise (R-Mitchell) — and would not make a stop on the governor’s desk for a possible veto. Pless said he hadn’t talked to Corbin or Hise yet, but that he would in due time.
TDA board chair and Maggie Valley Alderman Jim Owens wasn’t immediately available for comment, but the board does have a regularly scheduled meeting on Wednesday.
Waynesville Town Council Member Chuck Dickson, however, was frank.
“I doubt that there is any support from the county or any of the towns for this proposal. In fact, the Haywood County commissioners recently praised the TDA plan to invest in long-term improvements for the county. The TDA is actively working to support and promote the local economy with tax money paid by visitors. I am puzzled as to why anyone would want to eliminate this valuable organization that brings in dollars to help the citizens of Haywood County,” Dickson said.
Anthony Sutton, Dickson’s colleague on Council, said he was interested in opening up a dialogue with Pless to learn more about his proposal.
“I look forward to having a discussion with Mark about what alternatives he is proposing for our area if the occupancy tax is taken away, and the necessity of a replacement of those funds to assist with the impact of tourism in our communities,” Sutton said.
Leaders in Waynesville and Maggie Valley have both had their issues with Pless in the past, with Pless stripping Maggie Valley of its authority to regulate its extraterritorial jurisdiction. Pless has, however, been largely responsible for tens of millions of dollars in direct appropriations to Haywood County for recovery from Tropical Storm Fred in 2021.
Pless chairs the House’s emergency management and disaster recovery committee, and is also a vice-chair of the House select committee on Helene recovery.
This is a developing story. Look for updates in the next issue of The Smoky Mountain News, online and on newsstands on Wednesday, Feb. 26.
