RUTHERFORDTON — For several months, the Rutherford County Commissioners, local town councils and tourism officials have been actively advocating for permission from state legislators, to change the way local occupancy tax dollars are spent. In the aftermath of Hurricane Helene, they say it is more important than ever before.
The Rutherford County Tourism Development Authority (TDA), whose members are appointed by the County Commissioners, works to promote Rutherford County as a tourism destination. TDA uses the “occupancy tax,” which is paid by visitors when they stay overnight in a Rutherford County lodging facility, to promote tourism.
The lodging property collects the occupancy tax and then sends those taxes to the Rutherford County government, to be used by TDA, on a monthly basis. By law, the local TDA must spend at least 2/3 of the funds to directly promote travel and tourism, while the remainder can be used for other tourism-related expenditures.
Now, the local leaders are asking for the spending formula to be altered. They want the individual counties to have the freedom and authority, to spend up to 50% on travel and tourism promotion, and 50% on other tourism-related expenditures.
The local TDA has been using its 1/3 portion for “other” expenditures, to support local capital projects that ultimately benefit those who reside here and also attract visitors. Examples of these projects are the numerous trails in Rutherford County including the Thermal Belt Rail Trail and Purple Martin Trail; and support for parks including Kiwanis Park and Norris Park in Rutherfordton, Legacy Soccer Park in Forest City, and the North Slope Skate Park in Spindale. The projects also include various downtown streetscape re-designs and enhancements.
Leaders now say the ability to support capital projects is critical as areas, especially in Lake Lure and Chimney Rock, which are recovering from the recent hurricane.
The resolution, adopted by several towns here, states “…the storm event damaged and destroyed private businesses and homes, public and private roadways and bridges, and electric, water and sewer infrastructure….The rebuilding of Rutherford County’s tourism assets, which are major economic drivers in Lake Lure and Chimney Rock Village townships where the greatest amount of destruction and devastation occurred, will take years if not decades to accomplish…”
The resolution also points out that Rutherford County is a N.C. Department of Commerce-designated “Tier 1” economically distressed county, and has been for 16 of the last 18 years, and that Rutherford County ranks as the state’s 22nd most economically distressed county.
Enabling TDA to spend more of the occupancy tax dollars on capital projects, officials say, will help Rutherford County recover more quickly, economically.
Willard Whitson, current chairman of the TDA, said “For years we have been advocating for a change in the funds utilization formula to permit a 50-50 split in how these dollars are spent. The reason being that the TDA organizations know best what their community needs are for marketing and asset development.”
“Some may wish to maintain the current formula while in others, especially here in Rutherford County, the need for new and renewed tourism assets is paramount, and we are already successful in our current marketing efforts,” Whitson continued. “The steady rise in occupancy tax revenue over the last six years suggests that this is the case.”
“Now, with the devastation wrought by Hurricane Helene, the need for asset development is even more imperative. So, we’re not saying that every county should spend their funds at a 50-50 split, but only that they be allowed to do so if they think that is best for their area,” he added.
The financial impact of Hurricane Helene, regarding tourism, is now becoming evident. Numerous venues are closed.
“All Chimney Rock Village lodging establishments are now closed,” said TDA Executive Director Don Cason. “Some may never re-open.”
Cason and his wife live in Chimney Rock Village, and noted that while progress is being made, full recovery will take years.
In September, 2023, TDA received $242,000 in occupancy tax income. In this past September, including the last week which included the hurricane, $150,000 was received.
“The coming months will be worse. October collections will show bigger losses compared to last year,” Cason said.
In the past fiscal year, which ended June 30, 2024, TDA received $2,856,000. This year’s budget, had originally been set at $2,750,000. But now, Cason made adjustments, and the current year’s budget is $2 million.
“In the three months prior to the storm, Rutherford County was setting records for tourism, and occupancy tax income,” Cason said. “It was our best three months ever. For this fiscal year, I hope, and pray, that we reach $2 million.”
While recovery is still ongoing in northwest Rutherford County, Cason reminds the public holiday travelers should still come to Rutherford County, and experience the small towns of Forest City, Spindale, and Rutherfordton. There are hotels, motels, bed and breakfasts that are open for business. Forest City’s famous Christmas lights will again delight local residents and visitors.
TDA’s comprehensive Rutherford Bound Master Plan is ongoing, Cason says, and efforts will continue to plan, organize and finance downtown revitalization, along with greenways, trails, and parks. TDA may have to reduce its financial commitment for specific projects going forward, for several years, because of the expected reduction in occupancy tax dollars.
“But our commitment remains, and Rutherford Bound is moving forward,” Cason said.
Cason and other officials believe that having flexibility in how they can spend the occupancy tax dollars, will only benefit Rutherford County in the long-term.
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