Taxing tourists to draw in more tourists

The discussion surrounding the yetto- be-written county lodging tax proposal is bringing to the forefront some good questions and some distractions.

You only need to look at our recent tax voting history to see that a sales tax is much easier to pass than a real estate (ad valorem) tax. In fact, the sales tax to improve our water system passed by 80 percent, while an ad valorem tax that would have been matched with FEMA grant to build storm shelters at Sallisaw schools, failed.

In my time living back in Sallisaw over the last 19 years, I’ve seen sales tax pass for rural fire departments, and water supply, youth sports and water parks, plus others, I’m sure.

Sales taxes are regressive in that they have an unequal application to taxpayers. Take for example the rural fire department sales tax. The fire departments certainly need our support, but the county tax applies a quarter-cent tax on all sales, no matter how much land you own that needs fire protection, even if you are not served by a rural fire department. On the other hand, if this had been an ad valorem tax, people owning more land, and therefore needing more fire protection, it would make sense that those people pay a larger portion of the tax.

The reason I think sales taxes in the county pass more often is because it feels like the burden is shared by everyone, not just landowners – and landlords don’t threaten tenants with rent increases over a sales tax. Plus, with an interstate and two US highways passing through, as well as the Walmart Supercenter, that we draw people in from outside our area to give them the opportunity to help pay for our civic improvements.

Lodging Tax In the case of the proposed lodging tax, I think there are a few issues that need to be pinned down before it is brought to a vote. There is obviously still time, since no language has yet been provided for what will be voted on.

This is how our civic process works. A group sees a need, goes and speaks to different groups that would be affected to seek feedback and consensus, language is drawn up and then voted on.

One of the easiest ways to identify there is a need for more tourism promotion of the county comes from Mark Walters, tax antagonist, himself.

In a recent Facebook post, he writes: “I ask what tourist destinations does Sequoyah County have?”

Oh, the irony! Off the top of my head I know we have three lakes, Sequoyah’s Home, hiking trails, casinos, etc. But this seems like evidence tourism promotion helps our own residents see what we have to offer.

One criticism of the proposal that I have heard is that there is already a lodging tax that applies to stays within the Sallisaw city limits. I think one way to handle the potential for a double tax is to write the law where the tax does not apply to incorporated areas of the county that have a lodging tax.

That would mean that a hotel or Airbnb/VRBO renter in Sallisaw would continue to pay the existing Sallisaw lodging tax, but not pay the proposed county lodging tax.

Do we need a tax? I see a county lodging tax as a way to help us keep up with the Joneses in promoting what our county has to offer. Thirteen Oklahoma counties and 15 cities already have a lodging tax. Tourism dollars through a lodging tax are a tried and true method of funding tourism promotion.

Plus, money spent by a visitor is new money, as opposed to paying for a service when you already live here. That is just passing around the same dollar. We need new dollars and we must fight to get them.

Mr. Walters is right that Sequoyah County is not McCurtain County and we don’t have a Hochatown. But that doesn’t mean we can’t figure out what we can do to better promote our area.

A lodging tax used to promote tourism in the county doesn’t attempt to benefit just one business or business owner, but all businesses who serve tourists. The law would set up a board which would direct spending the money in a manner that benefits county tourism, in general.

Remember that as the Griswolds left Chicago on their way to Wally World in the classic “Vacation” movie from the 1980s, they looked for places along the way to stop and see and learn about new things. Sequoyah County is someplace new to someone passing by.