When area lodging partners came to Christiansburg asking for a tax increase to support a joint tourism initiative, Town Council agreed -- and added another 1% for itself.
Collecting these additional taxes began for both Blacksburg and Christiansburg in 2005, with the county joining in by 2006. Each government had finally executed a contract with the local chamber to administer this program by early 2007.
By early 2008, Christiansburg council was changing its tune. Who knew it would be that much money? This implies council had no idea, although the initial presentations had projected $200,000 per year.
Late last year, council indicated it still wanted the program to meet stated objectives, yet it would be reducing the amount it contributed (but not the tax rate). No negotiating with funding partners or the Tourism Development Council, just make it so. This implies council believes it could do a better job, even without having its own tourism plan.
Most recently, council was still fuming and indicated it would continue funding this initiative for just 12 more months and that the TDC must become independent from the chamber. This makes it appear council is taking aim at the chamber -- their members and leadership. Are some folks just that miffed with the chamber and its board, or still upset about the chamber merger?
Now, during a leadership transition, the county Board of Supervisors will be taking up the tourism issue at their Monday meeting. The former county administrator had offered space in the government building to support this joint initiative (maybe because they contribute the least in collecting taxes from the 1700 hotel rooms). Are the Supervisors also "renegotiating" their tourism contract? When will Blacksburg begin this dialog?
Tourism is one of the largest industries in the United States, but Montgomery County localities already have some of the highest meals and lodging taxes in the state (higher than Roanoke, higher than Charlottesville). These tax sources can help offset the need to increase real property taxes, yet require a professional focus to grow and cultivate the revenue stream.
Without an effective approach, town and country residents cannot hope to compete for revenues derived from tourism -- and the train has already left the station (just look at Staunton, Botetourt, Nelson County as examples for those seeking to attract regional and through travelers).
Until our leaders get it together, taxpayers need to gird themselves to expect real property tax increases which will be needed to sustain our local government and their current levels of spending. Meanwhile, maybe these leaders are planning a golf trip to Michigan -- those constant television ads make it appear mighty attractive.