Republican lawmakers in Raleigh are moving quickly to stop North Carolina counties from using revenue from special tourism taxes on hotel rooms to pay for things like police.
They are acting after the Republican-majority North Carolina Supreme Court last month unanimously ruled that Currituck County on the coast could use hotel/motel taxes for public safety. The court’s rationale is that tourists need to be safe, and it's OK to use tourism dollars for extra police services.
That ruling prompted some Charlotte City Council members, like JD Mazuera Arias and Victoria Watlington, this week to take a second look at the idea of using hospitality taxes to pay for public safety. Council members briefly considered doing that two years ago before dropping the idea in the face of opposition from the tourism industry.
But the General Assembly has moved quickly. Senate Republicans filed a bill substitute Tuesday that prohibits counties from using hotel/motel taxes to fund things like affordable housing, fire protection, education and police.
The measure passed the House Tuesday with bipartisan support, 109-3.
Charlotte hotelier Vinay Patel said he supports the legislature’s move. He said the general property taxes he pays on his hotels should pay for public safety, and the additional hospitality taxes should be dedicated exclusively to things like events and sports venues that bring hotels more business.
In Mecklenburg County, hotel and motel rooms are taxed at a total of 8%. Of that, 2% is dedicated to the NASCAR Hall of Fame. County residents also pay a 1% tax on prepared food and beverages that is dedicated to the Charlotte Convention Center and venues for professional sports teams.
