GOVERNMENT RELATIONS UPDATE
VACVB supports many of the legislative initiatives that the VHTA is working on in relation to travel and tourism promotion.
The VHTA puts out information about legislation affecting the industry and VACVB updates its members on a number of these select topics.
Below is a sampling of hot button legislation VHTA will be following this Session. Please stay tuned for updates and email: Katie@vhta.org with your feedback.
Lodging Taxes
On another front, tax policy is a hot topic in the hospitality world this Session. As you know VHTA has long opposed a statewide meals tax and continues to oppose eliminating the referendum requirement for counties to levy a meals tax. In addition, lodging taxes are the root of much discussion. Currently there are requests from counties (Washington, Madison, Accomack and Brunswick) to increase their lodging tax. Because Virginia operates under the Dillon Rule, each county must request the authority to increase its Transient Occupancy Tax (TOT) from 2% to a rate up to 5%. VHTA strives to ensure that TOTs do not adversely affect the hospitality community and, equally as important, are dedicated to tourism promotion.
Promote the High Tourism Season
Once again it is time to promote the importance of the high tourism season and advocate the traditional Post - Labor Day School Opening. VHTA supports maintaining the current law requiring schools to open after Labor Day and waiver system. Here you may find a copy of the Economic Contribution of Virginia’s Travel and Tourism Industry and the Economic Consequences of Shortening the High Tourism Season. Please reach out to your legislators if you have not already. The Labor Day Coalition has been active with its efforts and I encourage you to contact your legislator as well!
Tax on Room Rentals via Online Travel Companies
Another complicated matter is the Tax on Room Rentals via Online Travel Companies. VHTA has discussed in depth how online travel companies (OTC’s) are taxing room rentals booked through their websites. In the end, discussion has focused around the fact that lodging should not be liable for collecting or remitting taxes on behalf of an intermediary (OTC) and that preferential tax treatment should not be granted to intermediaries that would not also apply to lodging. VHTA understands the importance of this issue not only to lodging but also to destinations and communities whose tourism efforts- whether promotion or otherwise- depend in many cases on the revenue generated from tourism spending and will continue to participate actively in the debate.
Virginia Tourism
Tourism dollars generate instant economic activity and support many businesses both within and outside the hospitality and travel community. Governor McDonnell has proposed an additional $1 million to support VTC’s cooperative marketing program. This funding is critical to promoting Virginia and allowing destinations to participate in a cost-effective marketing plan. The program attracts visitors and more specifically their dollars. In addition, the Governor has proposed a new tax credit to encourage the growth and expansion of wineries. VHTA supports this initiative as well as efforts to increase Virginia’s competitiveness by the Virginia Film Office and supporting an additional $2 million for the Governor’s Motion Picture Opportunity Fund.
Because of the many, many legislative issues before legislators, I hope to see you in just a few weeks for the 2011 Legislative Meeting and Café; it is truly critical that your legislators see your face and hear your voice in the coming weeks. Thank you for your participation.
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