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State Representative Barbara Bailey - 10th Legislative District

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FOR IMMEDIATE RELEASE

Feb. 2, 2007

 


Mount Vernon chamber president urges passage of Bailey bill

Measure would allow chambers of commerce continued use of 'hotel-motel' tax

Mount Vernon Chamber of Commerce President and CEO Kristen Whitener urged lawmakers Thursday to adopt a bill by Rep. Barbara Bailey that would allow chambers of commerce to continue the practice of using "hotel-motel" taxes for tourism promotion.

During a hearing of the House Community, Economic Development and Trade Committee, Whitener said an attorney general's opinion puts in doubt whether chambers of commerce across the state could receive a portion of the 2 percent tax from cities and counties for tourism efforts.

"This bill came to light as a result of the attorney general's opinion and confusion afterward. It is directly affecting some of our chambers of commerce as we do act as a front door to most communities," said Whitener. "The North Cascades Chamber is funded by our county lodging tax. When the opinion came out, the county pulled back and decided until this law is clarified that it will not fund any of the operational costs. In effect, it closed the doors to that very important North Cascades Highway visitor information center."

"The attorney general's opinion has affected our chambers of commerce in Island County, including Oak Harbor, Langley, South Whidbey, and Camano Island," said Bailey, R-Oak Harbor. "The municipalities now have concerns as to how they can distribute the 2 percent monies. The law has been interpreted in the past that this revenue can be distributed to our local chambers for tourism efforts. My bill would not change the definition of how the monies could be spent."

House Bill 1254 would authorize local lodging tax revenues to be used for tourism-related facilities owned by a public entity or a nonprofit 501 (c)(3) or 501 (c)(6) organization. In addition, it authorizes municipalities using local lodging tax revenues for tourism promotion to contract with nonprofit organizations for tourism promotion activities.

"Representative Bailey's bill just clarifies the law to say that the municipality does not have to have ownership of visitor centers to provide operational expenses which keep those front doors to the communities open," noted Whitener.

Bailey, who also serves as a member of the committee hearing the bill, said the measure was written very narrowly to ensure the use of such funds would not be expanded to other entities.

"Having spent 20 years in the hospitality and hotel industry, I'm very familiar with and supportive of tourism events, festivals and activities, and how we promote those around our state. I'm also very supportive of all of those entities being viable pseudo-businesses. If a festival cannot stand on its own, investing public dollars is probably not the right thing to do," said Bailey. "However, once the festival is going, then definitely it is appropriate to use those monies for promotion.

"Right now, however, the law is not clear. Our chambers of commerce staff most of the tourism efforts in a lot of the local, rural communities where visitors and convention bureaus (VCBs) do not exist. This would not interfere with the VCBs, but it would also permit the chambers to promote tourism," concluded Bailey.

The committee could take action on the bill as early as next week.

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