Charlotte Mayor Vi Lyles Wednesday defended the city’s decision to not tell the public that it’s pursuing an extension of two countywide sales taxes dedicated to funding stadiums and tourism facilities.
In an appearance on Charlotte Talks, Lyles said the hospitality industry is important to the city and that the taxes are needed to grow that industry.
But she did not directly answer questions about why city staff did not give a public presentation about the plans to extend the taxes until 2060. City staff periodically gives City Council updates on their state and federal legislative agenda; the sales tax extensions were never mentioned in those presentations.
The first tax is a 1% levy on prepared food and beverages that are mostly paid by county residents — people going out to eat, for example. That money can be used for the Charlotte Convention Center, amateur sports and a new football stadium for the Charlotte Panthers.
The city expects Carolina Panthers owner David Tepper to ask for public help in either building a new stadium or renovating Bank of America Stadium in the coming years.
The 1% prepared food and beverage tax is set to sunset in early 2031. The city projects it will generate $47 million in the upcoming fiscal year. Extending the tax until 2060 would allow the city to collect an additional roughly $2.5 billion over that time.
“I consider this a tax that’s really for the hospitality industry,” Lyles said during the show.
Host Mike Collins then noted that county residents are paying it.
Lyles responded by saying: “But I also live here and I pay the other taxes in a lot of ways like the storm water tax and the other fees that we have. I think it’s just a matter of making a choice about what kind of future we’re going to have in terms of hospitality.”
The difference, however, is that taxes and fees are part of its budget, which is a public document released weeks before the City Council votes to approve it. There is also a public hearing on the budget, and often several council meetings in which issues like fees and taxes are discussed.
A bill to extend the two taxes advanced in the state House Tuesday. The bill as filed would create a custom Charlotte FC license plate — the tax extension provisions were added in an amendment. Mecklenburg Republican House member John Bradford is the primary sponsor. The bill also has support from four Mecklenburg Democratic House members.
It would also extend a 2% tax on hotel and motel rooms to benefit the NASCAR Hall of Fame. That tax is set to expire in 2038, but would also be extended until 2060.
“One in nine people work in the hospitality industry,” Lyles said. “We have invested in those opportunities. This is an opportunity for them to ask to tax themselves.”
She noted that the initial discussion about the tax extensions in Raleigh was public.