Lodging tax strengthens our local economy

Submitted by Bruce McCormack
Posted 10/22/20

Dear Editor:

After nearly 35 years of solidly backing the lodging tax, we urge Park County voters to continue that support in the general election.

The vast majority of these invaluable …

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Lodging tax strengthens our local economy

Posted

Dear Editor:

After nearly 35 years of solidly backing the lodging tax, we urge Park County voters to continue that support in the general election.

The vast majority of these invaluable revenues for county-wide tourism promotion are paid by visitors who purchase lodging in Park County and the northern half of Yellowstone Park.

Tourism remains increasingly competitive in the West and absent the sophisticated marketing plan executed every year by the Park County Travel Council, our local economy would suffer badly. Indeed, the smart and timely marketing campaign this spring and summer was key toward producing the relatively busy — considering the COVID-19 crisis — summer and fall tourism season experienced in Park County. This is no time for us to break stride in promoting tourism.

In 2019 the 4% lodging tax generated $3.1 million. Ten percent of the annual total is split between the four municipalities in Park County. The PCTC then allocates 71% of remaining revenues to the tourism marketing program, 20% for a grant program that directly supports the tourism activities of various organizations in the county, and 9% is spent on administration. This is a frugal, broad and generous approach to spending lodging tax revenues.

You may not be directly employed in the tourism sector, but never doubt that it benefits you. As tourism dollars turn over locally an estimated seven times they generate spending that boosts virtually every other part of our economy and community. Another important benefit of a strong tourism economy is that these visitors to Park County also contribute about one-third of the total sales tax collected here, thereby reducing the tax burden on local people. Put another way, in 2019 the estimated $10.6 million collected in sales tax from visitors had the effect of lowering the tax burden on every local household by $890.

As the national economy continues to suffer from the impacts of COVID-19 and our state government faces unprecedented tax revenue and budget reductions, Park County people can cast a vote that will help maintain and strengthen our local economy by supporting the lodging tax.

Thanks for your consideration.

Bruce McCormack

Park County PAC, chairman

Cody

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