Representative ‘cautiously optimistic’ about legislation
N.C. Rep. Karl Gillespie (R-Macon)
Raleigh – It seems a bit like the roles are reversed: lodging outside the largest municipality can collect an occupancy tax, while anyone who welcomes guests inside town limits is left out of the contribution process.
House Bill 133 zeroes in on rectifying the issue – even if there will be some obstacles to overcome.
Sponsored by state Rep. Karl Gillespie (R-Franklin), the “Graham County Occupancy Tax” looks to restructure the lay of the land, where lodging inside Robbinsville’s borders is able to contribute to the same cause as locations like – to name a few – Fontana Village Resort, Snowbird Mountain Lodge and Tapoco Lodge.
A 3 percent occupancy tax is assessed on the gross amount collected for room rentals provided by any lodge/resort in Graham County today. Yet, a chain hotel like Quality Inn & Suites on Rodney Orr Bypass – a popular, year-round destination for travelers – is not included in the process.
The simplicity of Gillespie’s pitch appears to be an easy sell. However, he pointed out in a Monday interview with The Graham Star that bills similar to this have already been introduced twice – once by Gillespie, and once by state Sen. Kevin Corbin (R-Franklin) when he served in the House – to no avail.
“This will be six years that we’ve been working on this,” Gillespie said. “I’m cautiously optimistic that we’ll be able to get something resolved this time.”
The bill was on the fast track after Gillespie first introduced it Feb. 13.
Two weeks later, it passed the House Committee 111-5 and is nestled with the Senate Rules Committee, where Gillespie is 100 percent confident that the bill will be denied.
That’s when mediation to finally get the legislation on the books can begin.
“I have had numerous conversations with Sen. Corbin about it; he is working to get it heard over there,” Gillespie said. “There’s occupancy tax bills that have passed the Senate this year, and they’re not moving them. The Senate rules and House rules do not match, so we’re going to have to make sure they hear the bills, change them to match their rules and then send them back to us, but we won’t agree to the changes. Then, it will go to a group appointed by the Senate pro temp and the speaker.
“It will be up to the group to work out the differences.”
Included in the bill is the caveat that after 3 percent has been collected on $500,000 in gross proceeds, the remaining surplus will see a 1-percent collection by the county. In turn, Graham County Travel & Tourism can use the funding to help promote – what else? – tourism, but only in areas of Graham County that fall under the occupancy-tax jurisdiction.
“It seems like a pretty common-sense thing to do,” Gillespie said. “I’m typically opposed to taxes, but I’m on board with this one because the tax is not being paid by the local folks: it’s the folks that are traveling through that pay the tax.”
Gillespie later said he believes the bill would be passed by the end of 2023.