Tourism Development Alliance of Georgia

1
Tourism Development Allianceof Georgia

• Governors Conference on Tourism
• Columbus, GA
• September 14, 2006

2
Hotel Motel Tax

• Original Intent was Tourism Promotion
• 22 Current Versions
• at 3, 5, 6, 7 and 8

3
HB 1415

• Creates Accountability through DCA
• Creates Complaint Process through DCA
• First Hearing October, 2005
• 2 Complaints
• 1)City of Port Wentworth street lights not
  allowed from 2 of the 5
• 2)City of Hampton recipient of the funds must
  be a separate legal entity from the city

4
2006 Hotel Tax Bills

• HB 1030 sponsored by Rep. Vance Smith. Allows
  tax to be distributed to a charitable trust for
  capital development or tourism.
• HB 1317 sponsored by Rep. Buddy Carter. Allows
  tourism portion to be spent on street lights.
• SB 518 - Buford CVB
• SB 519 - Suwanee CVB
• HB 1251 - Braselton CVB

5
Definitions

• Definitions Included in the Hotel/Motel Tax Code
  Section
• 48-13-50.2.
• As used in this article, the term
• (1) 'Innkeeper' means any person who is subject
  to taxation under this article for furnishing for
  value to the public any rooms, lodgings, or
  accommodations. (2) 'Promoting tourism,
  conventions, and trade shows' means planning,
  conducting, or participating in programs of
  information and publicity designed to attract or
  advertise tourism, conventions, or trade shows.

6
Private Sector Nonprofit

• (A) For purposes of this Code section, a 'private
  sector nonprofit organization' shall be a chamber
  of commerce, a convention and visitors bureau, a
  regional travel association, or any other private
  group organized for similar purposes which is
  exempt from federal income tax under Section
  501(c)(6) of the Internal Revenue Code of 1986
  provided, however, that a county or municipality
  which has prior to April 1, 1990, contracted for
  a required expenditure under this Code section
  with a private group which is exempt from federal
  income tax under provisions of Section 501(c) of
  the Internal Revenue Code other than Section
  501(c)(6) may continue to contract for required
  expenditures with such a private group.

7
State Authority

• (B) For purposes of this Code section, 'state
  authority' shall mean an authority created by
  state law which serves a state-wide function
  including, but not limited to, the Geo. L. Smith
  II Georgia World Congress Center Authority, but
  shall not mean an authority created for support
  of a local government or a local purpose or
  function and shall not include authorities such
  as area planning and development commissions and
  any organizational entities they may create,
  regional development centers and any
  organizational entities they may create, or local
  water and sewer authorities.

8
Potential Changes

• What Organizations should qualify
• Definition of either a CVB or DMO
• Policy for Bonded Indebtedness
• Qualifying Capital Investment Projects
• Require entire county delegation to sign
  legislation

9
Hotel Tax Lawsuits

• Fast Facts
• Class Action Filed by the City of Rome and Floyd
  County
• Separate lawsuit filed by the city of Atlanta
• Attempts to prove that the taxes on hotels have
  been collected and are due to the state
• Hotel Excise Tax and Sales Tax
• Attempts to prove that a hotel room sale is no
  different than Kroger or gasoline

10
What can you do?

• Tell everyone that supports you
• We support the original intent of hotel tax
• Hotel Tax is for Tourism Promotion
• The Law Needs to be Simplified
• Encourage your cities and counties to familiarize
  themselves with the lawsuit
• Be aware of independent hotel position

11
What Can You Do To Help?

• With elected officials
• Support them where they live contribute time and
  resources
• Support Committee Research Tours
• Attend Committee Meetings, Board Meetings
• Invite them to tourism events or just a cup of
  coffee
• Be a resource
• Be an ally