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Bed Tax Alert
CALL-TO-ACTION: "Bed tax" dedication MUST be in Erie County's '08 budget September 25, 2007 There's this business. A billion dollar operation, one division of which is self-sustaining and yields a 20-1 return on investment. However, the company is not promoting this vital division. If it did, the ROI would skyrocket. Doesn't it make sense for the management of this billion-dollar business to invest in this particular facet of its operation?
The company? Erie County. The division? Its convention and tourism business. For years, the Partnership and the tourism industry have advocated for full dedication of Erie County's hotel occupancy tax - or "bed tax" - for convention and tourism promotion and marketing. Thus far, the call has gone unanswered, but change may be upon us. A proposal is on the table to dedicate a figure equal to 80% of 2006's bed tax revenues to the CVB, eventually increasing it to 100% of the prior year's figure by 2010. If not ideal, it's a compromise proposal that meets our community's convention and tourism marketing needs.
To make the proposal a reality, there are two steps that need to take place: - The Erie County budget office needs to put the 80% dedication into its 2008 proposed budget, which must then meet with Legislature approval.
- The Erie County Legislature must then formalize the "ramp up" agreement by passing a Local Law amending the County Charter to include the full dedication of the bed tax to the CVB.
It's important to note that the Legislature has made it clear that nothing dramatic is going to happen until a new administration is in place, which means that our lobbying effort for passage of the Local Law will be in the spring. At present, the bed tax issue is our highest priority at the county level, serving as a litmus test for all legislature candidates this November.
The good news is that both Jim Keane and Paul Clark have told the Buffalo News that they're in favor of the dedication (and we hope to hear a similar statement from Chris Collins). All that being said, it is imperative that the "pump be primed" with the agreed-to 80% dedication being included in the 2008 budget.
Please send a message to County Executive Joel Giambra, using the Partnership's VoterVoice technology, about the importance of this dedication. Remember that the tourism industry in Erie County generates a 20-1 return-on-investment, resulting in: $150M in hotel revenues annually $650M in direct visitor spending More than $50M in sales tax revenues (that's money that Erie County sales and property tax payers don't have to pay to support roads, bridges, cultural organizations, social services, libraries, etc.) 15,000 jobs
Please take the time to contact the County Executive with the message that we need his leadership on this issue now - the proposed budget will be submitted to the Legislature in early October. Sending an e-mail takes 90 seconds. A 90-second investment that could yield tens of millions of dollars in visitor spending in Erie County.
Thank you for your help in this important business development issue.
Sincerely, Andrew J. Rudnick
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Bed Tax Alert
