By Jim Stanford on February 19, 2010
Four Seasons in Teton Village.
Teton County commissioners have raised the possibility of letting voters enact a 2 percent lodging tax come August, to help close a budget shortfall estimated at $3 million.
The idea is long overdue. Concerns about overpromoting Jackson Hole scuttled the tax in 1994, ‘96 and ‘98.
But this is not 1998, and what started as a noble effort to preserve Jackson Hole wound up being a tragic mistake that cost the community dearly these past 12 years.
If only the tax had been levied, we’d probably have a free, comprehensive START bus system by now, with a dedicated stream of funding.
A short bit of history: Wyoming legislators enacted the lodging tax years ago specifically for Teton County, the state’s golden goose of tourism. But the law mandates that 60 percent of revenue from the tax be spent on promotion, while only 30 percent can go toward mitigating visitor impacts and 10 percent for general operations. (Originally, the share was 90 percent for promotion.)
That split caused dissent and ultimately led to the tax’s defeat. Teton County residents rightfully wanted more of the money allocated for mitigating impacts — but the Legislature, lobbied heavily by the lodging industry, resisted. At the time our state representative was Clarene Law, R-Jackson, who happens to be — you guessed it — an innkeeper.
So we got stuck with the 60-40 split, and Teton County voters said screw you to the tax. Thus arose the strange situation in which Jackson Hole, the tourism mecca for which the tax was intended, became the only tourist destination in the state not to levy the tax — a fact that has irritated Wyoming lawmakers ever since (to the point where they are now considering withholding state grants).
Amangani resort atop East Gros Ventre Butte.
There have been failures on many levels: Our state reps lacked the interest or effort in lobbying their colleagues to further adjust the revenue split (Rep. Pete Jorgensen, D-Jackson, is an exception, having proposed a bill last year that would have given counties 100 percent local control over proceeds), and town and county officials did not show leadership in creatively defining “promotion” so that voters might find it palatable.
After 1998, an invention called the Internet allowed people to find out about Jackson Hole without billboards or magazine ads, and hordes of tourists came, anyway. Megahotels invaded with their own built-in promotion. Real estate speculation fueled runaway growth and gentrification, and we wound up with the same problems lodging tax opponents had feared — congested roads, strained infrastructure — only worse, and without revenue to offset the impacts.
And here’s the kicker: Many of the lodging properties in town assessed a fee on their guests’ bills anyhow and spent 100 percent of the proceeds on promotion.
Vail Resorts' Snake River Lodge and Spa.
So this latest move by commissioners is an attempt, essentially, to collect the 40 percent of tax proceeds the county should have been reaping all along. They estimate the tax would bring in more than $1 million annually. It’s also an attempt to raise revenue without further burdening residents, as the tax would be paid solely by visitors.
As reported by Cara Rank of the News&Guide this week, commissioners made a soft pitch to the Chamber of Commerce and found tentative support — but also a demand from lodging operators that they have control over how the proceeds are spent.
Whatever. The lodging industry has been coddled enough, with the 60-40 split. Commissioners are talking about only a 2 percent tax, although state law allows for up to 4 percent. An extra buck or two on guests’ bills isn’t going to break the mom-and-pops in town, and we sure know the Four Seasons suite renters can afford it. Unlike in 1998, residents shouldn’t fear a little more marketing, which could help make up the 15 to 20 percent plunge in tourism Teton County has experienced during the recession.
Commissioners should go a step further and creatively define “promotion.” START bus, paths, trails, Fourth of July fireworks, free concerts at Snow King, Pole Pedal Paddle — these are all great promotions. There’s no smarter way to promote Jackson Hole than to have a community that works better.
Posted under Business, County Government, Politics
Great Post, Jim…
What is the county spending so much money on that they could possibly have a $3 million shortfall?
Perhaps the cost structure of the county is unrealistic and needs to be changed, rather than imposing taxes and levies.
The answer is not always confiscating more money from the private sector.
Another excellent, well-researched article. Thank you.
Let’s see, danno – how about roads, levees, bridges, fire and emergency medical services, parks and recreation, salaries and wages for the many departments of the County including Treasurer, Planning, Building, IT, Engineering, START…should I go on? With the shortfalls in sales tax – each department has had to cut their budgets by 10-15%. Which is huge considering that some departmental budgets were lacking before the economy tanked. The lodging tax is WAY overdue. We are one of the richest counties in the nation but yet, because of our tax structure, we can’t even keep our ambulances staffed.
A Lodging Tax might pass if the percentage for promotion were earmarked for the promotion of eastern and southern Wyoming ONLY.
Thrice, Teton voters have shown they abhor any promotion of Jackson Hole, and the growth it brings.
Let’s do our lodging facilities a favor by encouraging no more of them.
morrisbob@hotmail.com
Teton Village
i agree with bob this time. no more roller coaster taxes.
Jim!
Thanks for the great explanation of this tax, and also your visionary ideas for ‘promotion’. It is great to see someone who can see beyond the shiny Jackson Hole magazine, and to true community infrastructure development that would also lend to increased promotion. Maybe the Chamber will hire you for as creative director!
*Breaking News*
Tourist are coming to Jackson Hole. AHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH
Although there may be a down turn right now it will eventually make its way back up. Take advantage of the tax and the so-called down turn to make the county more efficient, more user friendly, and more environmentally friendly. Before you know it, it will be to late if its not already. Two of Americas most valuable natural assets are on the door step of JH, and tourism will only increase and cause greater impacts in the future. Which could be a good thing if utilized correctly.
Jim, Great article. While I would NEVER support an additional cent general/sales tax, I would absolutely support a lodging tax. I’m hopeful that all sides in this issue can educate one another and find an answer for us all.
Adding a lodging tax won’t prevent resorts from continuing to assess their own fees. The 60-40 split sucks and I’ll continue to say “screw you” to this tax.
Great article, Jim. Thoughtful comment, HK. The statute reads: Expenditures for travel and tourism promotion shall be limited to promotional materials, television and radio advertising, printed advertising, promotion of tours and other specific tourism related objectives. Its the last “other specific tourism related objectives” that makes me think the money can be used to pay for visitor services that chamber provides, as well as other special events, such as Old West Days, both of which the town and county already fund. If so, this would free up dollars in addition to the 40% that could go to START, ambulance service on the west bank, pathway maintenance, library, recreation center subsidies, and (god forbid) affordable housing. . .
Well, it so happened that in 1994 I was an innkeeper and owned 2 downtown motels.So I was involved in the lodging tax vote.
We, the innkeepers had mandated a survey from consultants from Denver. They found out that the lodging tax revenues of previous years had been spent on administrative costs and very little on promoting Jackson Hole. That is important because the gripe of the opponents was that by promoting tourism it would increase visitations to this valley.And THEN ,like NOW the crowd of “close the doors behind me because now I am here you can stay out” was already powerful.
There was a gentleman called Phelp who was the straw man representing some mysterious person or persons who financing his campaign.
We were taking then about $1.5 million in tax revenues.That was a drop in the ocean.
By the way if anybody knows Clarene Law they would realized what a compassionate person she is in helping the unfortunate.
She is one of my favorite Republican and is more helpful to the people in needs that a lot of democrats, being one {democrat}I don’t write that lightly.But that is an argument for another day.
If the proposed Tax helps Jackson Economy all well and good.
Apart from putting the historical facts right the greatest significance, in my mind, is the fact THEN like NOW there are people with money and somber intentions who try to bend the minds and politics of this county. Organizations such as JHCA and Save Historic Jackson are very detrimental to the simple existence of ordinary working people of this valley.They have deep pockets to originate law suites and campaigns.Some like Justin Adams , Peter Mower have been vociferous in voicing their views some are more stealth in their approach. Rumors have it that outsiders like Redford and Spielberg are significant contributors to environmental groups in the Greater Yellowstone area. I have personally no way of proving it.
What seems wrong is that we cannot shake off powerful wealthy backers of campaigns and politics which are a barnacle in the ass of the economic life of Teton County.They are clearly hostile to the working people, lower class,middle class, professional people who make it possible for this valley to function on a daily basis.Affordable housing is the “cheval de bataille” of these Machiavelli . We need a diversified community and these alcove conspirators have for goal to make sure it does not happen.
It’s official. The 2 percent tax will go before voters in the November election: http://www.jhnewsandguide.com/article.php?art_id=6365