AGENDA Tuesday, August 1, 2017

Transcription

1 GRAND COUNTY COUNCIL and MOAB AREA TRAVEL COUNCIL ADVISORY BOARD Joint Meeting Grand County Council Chambers 125 East Center Street, Moab, Utah AGENDA Tuesday, August 1, :00 p.m. JOINT MEETING Call to Order Joint Workshop on Transient Room Tax (TRT) and Tourism, Recreation, Cultural, Convention and Airport Facilities (TRCCAF) Tax A. PowerPoint presentation on TRT and TRCCAF (Elaine Gizler, Moab Area Travel Council Executive Director) B. Forming a joint committee to determine whether the present Utah Code regarding TRT adequately addresses the needs of a mature tourist economy (County Council Member McGann) Future Considerations Adjourn NOTICE OF SPECIAL ACCOMMODATION DURING PUBLIC MEETINGS. In compliance with the Americans with Disabilities Act, individuals with special needs requests wishing to attend County Council meetings are encouraged to contact the County two (2) business days in advance of these events. Specific accommodations necessary to allow participation of disabled persons will be provided to the maximum extent possible. T.D.D. (Telecommunication Device for the Deaf) calls can be answered at: (435) Individuals with speech and/or hearing impairments may also call the Relay Utah by dialing 711. Spanish Relay Utah: 1 (888) It is hereby the policy of Grand County that elected and appointed representatives, staff and members of Grand County Council may participate in meetings through electronic means. Any form of telecommunication may be used, as long as it allows for real time interaction in the way of discussions, questions and answers, and voting. At the Grand County Council meetings/hearings any citizen, property owner, or public official may be heard on any agenda subject. The number of persons heard and the time allowed for each individual may be limited at the sole discretion of the Chair. On matters set for public hearings there is a threeminute time limit per person to allow maximum public participation. Upon being recognized by the Chair, please advance to the microphone, state your full name and address, whom you represent, and the subject matter. No person shall interrupt legislative proceedings. Requests for inclusion on an agenda and supporting documentation must be received by 5:00 PM on the Wednesday prior to a regular Council Meeting and forty-eight (48) hours prior to any Special Council Meeting. Information relative to these meetings/hearings may be obtained at the Grand County Council s Office, 125 East Center Street, Moab, Utah; (435) A Council agenda packet is available at the local Library, 257 East Center St., Moab, Utah, (435) at least 24 hours in advance of the meeting. 7/28/17 Page 1 of 1

2 Grand County-Moab, Utah Transient Room Tax, and Tourism, Recreation, Cultural, Convention, and Airport Facilities Tax TRT and TRCC

3 PREPARED BY ELAINE GIZLER MOAB AREA TRAVEL COUNCIL EXECUTIVE DIRECTOR

4 MOAB AREA TRAVEL COUNCIL MISSION STATEMENT THE MOAB AREA TRAVEL COUNCIL SEEKS TO IMPROVE THE LOCAL ECONOMY BY PROMOTING, MARKETING, AND SUPPORTING RECREATION, TOURISM, EVENTS AND CONVENTIONS IN A MANNER THAT PROMOTES AND PROTECTS THE BEAUTY AND SCENERY OF OUR NATURAL ENVIORNMENT, WHICH STRIVES TO INCREASE THE TRANSIENT ROOM TAX COLLECTIONS ON AN ANNUAL BASIS, AND TO EXTEND THE VISITOR SEASON TO A FULL 12 MONTHS.

5 TRANSIENT ROOM TAX What is TRT or Transient Room Tax? TRT is a tax on the rental of rooms in hotels, motels, inns, trailer courts, private campgrounds, tourist homes, and similar accommodations for stays of less than 30 consecutive days. TRT is not imposed on meeting room charges.

6 TRANSIENT ROOM TAX or TRT The county legislative body ( County Commission or County Council) controls utilization of the TRT & TRCC, with advice provided by the county Tourism Tax Advisory Board (TAB). The majority of Utah s 29 counties have an organization designated by the county legislative body to promote and market the county for tourism and to expend TRT. Most of these destination Marketing Organizations ( DMO) such as the Salt Lake Convention & Visitors Bureau, Park City Chamber/ Bureau, St. George Area Convention & Visitors Bureau, Utah Valley Convention & Visitors Bureau, Kane County Travel Council, Wayne county Travel Council, Moab Area Travel Council, Box Elder County Tourism, etc., are funded by the TRT and many receive TRCC taxes in addition.

7 Grand County Transient Room Tax or TRT The TRT Tax for Grand County is 4.25%

8 TRANSIENT ROOM TAX or TRT Expenditures of TRT: Total Grand County TRT 4.25% 1. Up to 100% of TRT may be used to establish and promote recreation, tourism, film production and conventions. 2. The first 3% of TRT collected is controlled by a 2/3 and 1/3 split. 2/3 of the first 3% of TRT collected must be used to establish and promote tourism, film and conventions this would be The Moab Travel Council.

9 TRT Purpose of transient room tax and expenditure of revenues- Purchase of lease of facilities Mitigating impacts of recreation, tourism, or conventions Issuance of bonds. A county may not use more than 1/3 of the revenues for any combination of: (1) Any county legislative body may impose the transient room tax provided in Section for the purposes of: (a) establishing and promoting recreation, tourism, film production, and convention; (b) acquiring, leasing, constructing, furnishing, maintaining, or operating: (i) convention meeting rooms; (ii) exhibit halls;

10 TRT Purpose of transient room tax and expenditure of revenues- Purchase of lease of facilities Mitigating impacts of recreation, tourism, or conventions Issuance of bonds. (iii)visitor information centers; (iv) museums; (v) sports and recreation facilities including practice fields, stadiums, and arenas; and (vi) related facilities; (c) Acquiring land, leasing land, or making payments for construction infrastructure improvements required for or related to the purposes listed in Subsection (1)(b); and (d) As required to mitigate the impacts of recreation, tourism, or conventions in counties of the fourth, fifth, and sixth class, paying for:

11 TRT Purpose of transient room tax and expenditure of revenues- Purchase of lease of facilities Mitigating impacts of recreation, tourism, or conventions Issuance of bonds. (i) solid waste disposal operations; (ii) emergency medical services; (iii) search and rescue activities; and (iv) law enforcement activities (2) Except as provided in Subsection (4), a county may not expend more than 1/3 of the revenues generated by the transient room tax provided in Section for any combination of the following purposes:

12 TRT Purpose of transient room tax and expenditure of revenues- Purchase of lease of facilities Mitigating impacts of recreation, tourism, or conventions Issuance of bonds. (a) (i) acquiring, leasing, constructing, furnishing, maintaining, or operating: (A) convention meeting rooms; (B) exhibit halls; (C) visitor information centers; (D) museums; (E) sports and recreation facilities including practice fields, stadiums, and arenas; and (F) related facilities; and (ii)acquiring land, leasing land, or making payments for construction or infrastructure improvements required for or related to the purposes described in Subsection (2)(a)(i); (b) As required to mitigate the impacts of recreation, tourism, or conventions in counties of the fourth, fifth, and sixth class, to pay for:

13 TRT Purpose of transient room tax and expenditure of revenues- Purchase of lease of facilities Mitigating impacts of recreation, tourism, or conventions Issuance of bonds. (i) solid waste disposal operations; (ii) emergency medical services; (iii) search and rescue activities; and (iv) law enforcement activities; or (c) Making the annual payment of principal, interest, premiums, and necessary reserves for any or the aggregate of bonds authorized under Subsection (3). (3) (a) The county legislative body may issue bonds or cause bonds to be issued, as permitted by law, to pay all or part of any costs incurred for the purposes set forth in Subsection (2)(a) or (b) that are permitted to be paid from bond proceeds

14 TRT Purpose of transient room tax and expenditure of revenues- Purchase of lease of facilities Mitigating impacts of recreation, tourism, or conventions Issuance of bonds. (b) Except as provided in Subsection (4), if the revenues generated by the transient room tax provided in Section are not needed for payment of principal, interest, premiums, and reserves on bonds issued as provided in Subsection (2), the county legislative body shall expend those revenues as provided in Subsection (1), subject to the limitation of Subsection (2). (4) if, on or after October 1, 2006, a county legislative body imposes a tax or increases the rate of a tax in accordance with Section at a rate that exceeds 3%, the county legislative body: (a) may expend revenues generated by the portion of the rate that exceeds 3% for any purpose described in Subsections (1) through (3); and (b) is not subject to any limits on the amount of revenues that may be expended for a purpose described in Subsection (2).

15 TRT Collections Year Total Tax Collected Travel Council Non Travel Council 2013 $2,873,429 $ 1,365,019 $ 1,508, $3,598,722 $ 1,839,305 $ 1,759, $4,097,178 $ 1,960,164 $ 2,137, $4,459,485 $ 2,468,219 $ 1,991,266

16 TRT Moab Area Travel Council TRT Funds support 4 Employee Salaries/benefits. All postage, utilities, supplies, equipment. Moab Information Center Restroom Extension hours open until 10 pm. Only public restroom in downtown Moab. Moab Information Center Contribution/CNHA toward operations, salaries, utilities etc. All promotional advertising, Printing of 150,000 Travel Guides, Informational sheets, photography, videos, commercials, in town Locator Boards, Website, Throttle Down program, Travel Shows, Trade Shows, all forms of marketing and promotion will include the Film Commission Grand County share Local Event Funding

17 TRT Non Travel Council Funds Support Airport Matching Fund Search & Rescue Emergency Medical Services Paved Trail Maintenance Law Enforcement activities Solid Waste 2016 Affordable Housing administration ( this came from legal review, not state code.

18 Utah State Code Tourism Tax Advisory Boards. Utah State Code states (1) (a) Except as provided in Subsection (1)(b), any county that collects the following taxes shall operate a tourism tax advisory board: (i) the tax allowed under Section ; or (ii) the tax allowed under Section (b) Notwithstanding Subsection (1)(a), a county is exempt from Subsection (1)(a) if the county has an existing board, council, committee, convention visitor s bureau, or body that substantially conforms with Subsections (2), (3), and (4).

19 Utah State Code Tourism Tax Advisory Boards. (2) A tourism tax advisory board created under Subsection (1) shall consist of at least five members. (3) A tourism tax advisory board shall be composed of the following members that are residents of the county: (a) a majority of the members shall be current employees of entities in the county that are subject to the taxes referred to in Section or : and (b) the balance of the board s member ship shall be employees of recreational facilities, convention facilities, museums, cultural attractions, or other tourism related industries located within the county.

20 Utah State Code Tourism Tax Advisory Boards. (4) (a) Each tourism tax advisory board shall advise the county legislative body on the best use of revenues collected from the tax allowed under Section by providing the legislative body with a priority listing for proposed expenditures based on projected available tax revenues supplied to the board by the county legislative body on an annual basis.

21 Utah State Code Tourism Tax Advisory Boards (5) A member of any county tourism tax advisory board: (a) may not receive compensation or benefits for the member s services; and (b) may receive per diem and travel expenses incurred in the performance of the member s official duties, in accordance with Section Amended by Chapter 70, 2017 General Session

22 Grand County Ordinance No. 507 Section 7. Tourism Tax Advisory Board 7.1 : The Travel Council Advisory Board shall serve as the Tourism Tax Advisory Board. (a) Are residents of Grand County; and (b) Represent the local: 1. Hotel and lodging industry; 2.Restaurant industry 3. Recreations facilities 4. Convention facilities; 5.Museums; 6. Cultural attractions; or 7. Other tourism- related industries

23 Grand County Ordinance No. 507 Section 7. Tourism Tax Advisory Board 7.3 The board shall advise the County Council on the best use of revenues collected from: (a) The transient room tax allowed under Section ; and (c) The tourism, recreation, cultural, and convention facilities tax allowed under Section The tourism Tax Advisory Board in accordance with Section Annotated (amended) shall prepare an annual budget for promotion of recreation, tourism, and conventions and shall submit said budget to the County Council for approval in a timely manner. 7.5 Every member of the Tourism Tax Advisory Board shall serve without pay, but shall be entitled for reimbursement for actual and necessary expenses, as approved by the County Council upon recommendation of the Travel Council Advisory Board, incurred while attending meetings.

24 Grand County Ordinance No. 507 Section 8. Reserve Fund Defined All Transient Room Tax funds accrued in the reserve fund as established by Ordinance No. 112 in excess of the promotional budget approved annually by the County Council shall be the responsibility of the County Council for expenditure as deemed necessary to ensure the health, safety and welfare of the citizens of and visitors to Grand County, as provided by Utah State Code (1)

25 TRCC or Tourism, Recreation, Cultural, Convention, and Airport Facilities Tax (1) (a) In addition to any other taxes, a county legislative body may, as provided in this part, impose a tax as follows: (i) (A) a county legislative body of any county may impose a tax of not to exceed 3% on all short- term leases and rentals of motor vehicles not exceeding 30 days, except for leases and rentals of motor vehicles made for the purpose of temporarily replacing a persons motor vehicle that is being repaired pursuant to a repair or an insurance agreement; and (B) beginning on January 1, 1999, a county legislative body of any county imposing a tax under Subsection (1)(a)(i)(A) may, in addition to imposing the tax under Subsection (1)(a)(i)(A), impose a tax of not to exceed 4% on all short- term rental leases and rentals of motor vehicles not exceeding 30 days, except for leases and rentals of motor vehicles made for the purpose of temporarily replacing a person s motor vehicle that is being repaired pursuant to a repair on an insurance agreement.

26 TRCC or Tourism, Recreation, Cultural, Convention, and Airport Facilities Tax (ii) a county legislative body of any county may impose a tax of not to exceed 1% of all sales of the following that are sold by a restaurant: (A) alcoholic beverages; (B) food and food ingredients; or (C) prepared food; and (iii) A county legislative body of a county of the first class may impose a tax of not to exceed.5% on charges for the accommodations and services described in Subsection (1)(i). (2) (a) Subject to Subsection (2)(a). Revenue from the imposition of the taxes provided for in Subsections (1)(a)(i) through (iii) may be used for : (i) (ii) Financing tourism promotion; and (ii) the development, operation, and maintenance of: (A) Airport facility; (B) a convention facility (C) a cultural facility (D) A recreation facility; or (E) A tourist facility

27 TRCC or Restaurant and Car Rental Tax A restaurant tax on prepared foods and beverages: Utah counties may impose a 1% TRCC restaurant tax on all prepared foods and beverages sold by restaurants. A restaurant is a retail establishment selling food and beverages for immediate consumption. Sales of food from deli areas, pizza take-out counters or salad bars within a grocery store or convenience stores are not subject to this tax. Alcoholic beverages are subject to a restaurant tax where imposed and sales tax.

28 TRCC or Restaurant and Car Rental Tax TRCC Tax for Grand County is: 1% Restaurant Tax 3% Car Rental Tax ( Short Term leasing)

29 TRCC or Restaurant and Car Rental Tax A tax on short- term leases or rentals of motor vehicles Included in TRCC is a 3% tax on short- term leases or rentals of a motor vehicle for 30 days or less. Motor vehicles include cars, trucks, jeep-type vehicles, and motor homes normally rented for tourism or recreational purposes. An additional tax on the short- term leases and rentals of motor vehicles any county already imposing the short-term leasing tax may impose an additional 4 percent short term leasing tax.

30 TRCC Collections/ Funds support 2013 $465, $545, $621, $665,933 Thompson Fire District, Film Commission, Airport Facility, Airport Debt Service, Star Hall, Old Spanish Trail Arena, The Moab Information Center maintenance, Recreation Trail Development, and Events..

31 TRT Collection Process In July 2011 Legislation was changed which removed the ability for counties to collect their own TRT, and the Utah State Tax Commission was given authority to collect the TRT The Utah State Tax Commission began charging an Administrative Fee for the collection of the Local Option Sales Taxes TRT The fee in 2011 was 0.8%, and is today.

32 Questions? If you would like any additional information, or further discussion please do not hesitate to contact me. My contact information is: Elaine Gizler Moab Area Travel Council

33 TRT Collections Year Total Tax Collected Travel Council Non Travel Council 2013 $2,873,429 $ 1,365,019 $ 1,508, $3,598,722 $ 1,839,305 $ 1,759, $4,097,178 $ 1,960,164 $ 2,137, $4,459,485 $ 2,056,955 $ 1,311,613 =1.25% $ 1,090,917 =.33 $ 2,402,530 Total