Budget Battle Going On Over Hotel Room Tax
City, Visitors Bureau Discuss Tax Money
Updated: 8:37 pm CDT October 21, 2008
MADISON, Wis. -- Questions linger about how the city hotel room tax should be divvied up and should the group that helps book those rooms get more of the tax.
VIDEO: Watch The ReportIt's all part of a city budget battle going on between the local convention and visitors bureau and Madison's mayor.This budget battle is not just about dollars -- it's about providing relief for city property taxpayers and each side says they have their best interest at heart.At the core of the issue is how to split up the Madison hotel room tax that funds city needs and the Greater Madison Convention and Visitors Bureau, which promotes tourism and conventions at the Monona Terrace and Alliant Energy Center.Such bookings are good for them and help hold down property taxpayer subsidies.The mayor's proposed 2009 budget gives the Visitors Bureau its contracted rate or 20 percent of the city room tax total. But, he also takes an extra million dollars out of the room tax fund to hold down property taxes.Visitors Bureau executive director Deb Archer said that's bad business, though.She wants that money to go toward meeting a new recommendation from a special committee set up to study the room tax.A few days ago, it issued its findings and one of them says the city should boost the Bureau's slice of the room tax pie from 20 to 35 percent."We're very optimistic the council and we really hope the mayor -- understands, too, the value of investing more in what we do and what the benefits and the returns are on the investment that they make in us, " said Archer.Madison's Mayor Dave Cieslewicz disagrees with an increase in funding and says he won't change his mind about it. He says that would be taking property tax relief away from taxpayers.Cieslewicz said: "The Convention and Visitors Bureau signed a contract (with the city) just two years ago --a five year contract at 20 percent. And now they want to come in an ask for more at a time when the city budget is under a lot of pressure."The mayor said the extra $1 million he's taking from the room tax is needed to keep the increase for the average property taxpayer to about 3 percent for 2009.He also calls the increase in the city's share of bureau over the years "extraordinary."He said its city funding increase has climbed over 100 percent since 2003, compared to say a 35 percent increase for the police department.Still, bureau officials are armed with the latest results of the new room tax study to back up their claim that the mayor is being penny wise and pound foolish.The city council can submit amendments to the budget next week and the full city council takes up the budget the second week of November.
VIDEO: Watch The ReportIt's all part of a city budget battle going on between the local convention and visitors bureau and Madison's mayor.This budget battle is not just about dollars -- it's about providing relief for city property taxpayers and each side says they have their best interest at heart.At the core of the issue is how to split up the Madison hotel room tax that funds city needs and the Greater Madison Convention and Visitors Bureau, which promotes tourism and conventions at the Monona Terrace and Alliant Energy Center.Such bookings are good for them and help hold down property taxpayer subsidies.The mayor's proposed 2009 budget gives the Visitors Bureau its contracted rate or 20 percent of the city room tax total. But, he also takes an extra million dollars out of the room tax fund to hold down property taxes.Visitors Bureau executive director Deb Archer said that's bad business, though.She wants that money to go toward meeting a new recommendation from a special committee set up to study the room tax.A few days ago, it issued its findings and one of them says the city should boost the Bureau's slice of the room tax pie from 20 to 35 percent."We're very optimistic the council and we really hope the mayor -- understands, too, the value of investing more in what we do and what the benefits and the returns are on the investment that they make in us, " said Archer.Madison's Mayor Dave Cieslewicz disagrees with an increase in funding and says he won't change his mind about it. He says that would be taking property tax relief away from taxpayers.Cieslewicz said: "The Convention and Visitors Bureau signed a contract (with the city) just two years ago --a five year contract at 20 percent. And now they want to come in an ask for more at a time when the city budget is under a lot of pressure."The mayor said the extra $1 million he's taking from the room tax is needed to keep the increase for the average property taxpayer to about 3 percent for 2009.He also calls the increase in the city's share of bureau over the years "extraordinary."He said its city funding increase has climbed over 100 percent since 2003, compared to say a 35 percent increase for the police department.Still, bureau officials are armed with the latest results of the new room tax study to back up their claim that the mayor is being penny wise and pound foolish.The city council can submit amendments to the budget next week and the full city council takes up the budget the second week of November.Copyright 2008 by Channel 3000. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
