Del. Amanda Batten, R-Norge, has kicked off an effort to slap a sunset clause on the controversial Historic Triangle sales tax hike tied to regional tourism marketing.
Batten’s bill, House Bill 1270, would set an expiration date for the 1% sales tax hike: July 1, 2026. The tax would be repealed on that date unless voters in a referendum held in Williamsburg, James City County and York County decided they wanted the tax to continue.
The sales tax increase was created by Senate Bill 942 in the 2018 General Assembly session. The 2018 legislation not only created the tax increase, but also created a new marketing authority, the Tourism Council, and directed a $2 transient occupancy tax to the body, which is part of the Greater Williamsburg Chamber and Tourism Alliance. The Tourism Council uses half the total revenue to market the region to overnight tourists. The other half of the money is given to Williamsburg, James City County and York County, based on where the taxes were collected.
The sales tax would continue to be collected only if voters in each taxed locality voted to allow it to continue being collected, according to the bill.
Batten’s proposed legislation comes amid a bill in the Senate sponsored by Sen. Thomas Norment, R-James City, that would require localities to allocate 10% of their hauls of the sales tax revenue provided by the 2018 legislation for a regional indoor sports complex. Norment also sponsored the 2018 legislation that created sales tax increase.
The 1% sales tax collected $21.6 million in FY19, according to figures the Tourism Council published in December.
Batten voiced her support for a referendum to determine the tax’s future, saying such a move would give the taxpayers a chance to decide whether they want to subject themselves to the tax, at a pre-legislative session forum held in Williamsburg Jan. 3. She said she frequently encountered voters frustrated with the tax while she campaigned for her seat. Batten didn’t return requests for comment made to her office this week.
Batten’s bill represents a ray of hope to critics of the tax, James City County Board of Supervisors Chairman Jim Icenhour among them.
“I think it’s a great idea,” he said.
Icenhour said that while he didn’t find fault with the concept of the Historic Triangle sales tax as a means to drum up money to market the area’s tourism industry, he didn’t like that the 2018 legislation lacked public input. Batten’s proposal would allow voters to consider whether the tax money has been put to good use and if the tax should continue to be collected.
He speculated sore feelings over the way the tax came to be could doom it if a referendum were to be held.
“There was really no public participation,” Icenhour said of the tax’s enactment. “That puts the Tourism Council and every locality in the jurisdiction under the gun to make a compelling case.”
Repeal of the 2018 legislation would mean the localities would lose their shares of the tax revenue, but Icenhour felt confident James City County could weather that storm because it has used its tax revenue largely for one-time expenses rather than recurring expenditures.
“We are prepared if that money goes away,” he said.
When asked for reaction to the legislation, York County Board of Supervisors Chairman Chad Green stopped short of a direct endorsement or objection. He said the Tourism Council seemed to be on the right track with its marketing efforts, though with the caveat that it was still early yet to make a determination on its effectiveness.
The money afforded by the 2018 legislation’s local allocation has been useful to York County, but the county would be able to figure something out if Batten’s bill passed, and referendum voters didn’t save the tax from repeal, Green said.
“We’re not dependent on it … but the money has been helpful the last couple years,” he said. York County uses its share of the sales tax revenue for expenses like public safety.
Williamsburg Vice Mayor Doug Pons likewise had a guarded response to Batten’s bill, saying that while Batten seems intent on doing what she thinks is right, and that is commendable, it remains to be seen how the legislation fares in the General Assembly. Repeal would be a mistake because the revenue generated by the tax is a boon to the region’s tourism industry.
“I applaud Amanda’s effort to do what she thinks is appropriate. I look forward to seeing how it passes through the House and through the Senate,” said Pons, who is also the city’s representative on the Tourism Council. “I think (SB 942) has so many positive attributes … Once the Tourism Council is fully on its feet, people will see the benefit.”
The bill would appear to have an uphill battle ahead of it. The bill, filed by a freshman delegate, seeks to do away with major legislation sponsored by Norment, a long-tenured and powerful lawmaker who leads Senate Republicans.
Norment vigorously defended the tax in comments he made at the pre-legislative session forum held last week. When asked for comment, a Norment spokesman referred to statements the senator made at the forum.
“If anyone screws with 942 in the 2020 session there are going to be legislative consequences. Let me be very direct about that,” Norment said at the forum.
Jack Jacobs, 757-298-6007, jojacobs@vagazette.com, @jajacobs_
