Charlotte City Council member J.D. Mazeura Arias said Monday that he wants to consider using tourism taxes to pay for more public safety uptown, a proposal that could set up another confrontation with the business community.
Two weeks ago, the North Carolina Supreme Court said it was OK for Currituck County, on the coast, to use special tourism tax revenue to bolster public safety. The court’s reasoning was that keeping tourists safe is a legitimate use of tourism dollars.
That ruling could open the door for the Charlotte City Council to do the same thing with taxes levied on hotel rooms, restaurants and bars. During a meeting of the council’s economic development committee, Mazeura Arias said it’s something the city should explore.
“We owe it to the residents of Charlotte and all Charlotteans for us to see how we can further make our streets safer using any available funding and tax dollars at the disposal of council,” he said.
Two years ago, council members Renee Johnston, LaWana Mayfield and Victoria Watlington proposed doing the same thing. Their idea was shut down after intense opposition from hotel owners and the state Restaurant and Lodging Association.
But the court’s recent ruling could embolden council members to try again.
The council won’t meet in July, when they take a summer break. The next discussion would take place in August.
City staff said they would need to review the legislation that enables Charlotte’s tourism taxes. A 2% tax on hotel and motel rooms that funds the NASCAR Hall of Fame probably wouldn’t be eligible for public safety. But other taxes on hotel rooms and a 1% tax on restaurant and bar tabs might be eligible.
If City Council members moved forward with the idea, it could bring another confrontation with business leaders. Earlier this year, the Charlotte Regional Business Alliance and the Real Estate and Building Industry Coalition unsuccessfully tried to keep the Interstate 77 toll lanes project moving forward before council members approved a measure to kill it.
Michael Smith of Center City Partners said he believes the city should be very focused on how it spends tourism tax dollars. He said he would be concerned about using some of that money for law enforcement.
