A proposed 2 percentage-point increase in Howard County's hotel/motel tax, proceeds of which would be used to help boost tourism, is a key request in a slim list of local legislation being requested from Howard's state legislators in the General Assembly session that starts next month.
County Executive Ken Ulman said he is merely helping tourism and economic development officials, so the proposed increase from 5 percent to 7 percent, which would make Howard's rate match Anne Arundel's, doesn't do violence to his campaign statement last summer that he has "no interest" in raising taxes. Baltimore County charges 8 percent, while Baltimore City gets 9.5 percent on hotel rooms. Carroll is at 5 percent and Harford has no hotel tax, though the town of Aberdeen is requesting enabling legislation to help raise funds to maintain Ripken Stadium.
"The bottom line is the Tourism and Economic Development Authority are asking me to pass on this request to the delegation," Ulman said. "This is an issue I view a little differently" from a general tax increase proposal, he said.
If the bill is approved, county officials expect about $1.2 million in new revenue, which would be split three ways between the Howard County Tourism Council, the Economic Development Authority and the county, according to a Nov. 10 letter to Ulman from Richard W. Story, the economic development CEO, and Rachelina Bonacci, executive director for tourism. They said the money would be used to boost hotel room bookings and increase business in the county. Currently, the tourism council gets $423,732 in county funding, while the Economic Development Authority gets nearly $1.3 million.
Story said his agency would use the money to increase marketing efforts to attract corporate headquarters to Howard, which would boost business use of hotels. Bonacci said that with work about to begin on renovations for an expanded tourism bureau in the former post office building on Ellicott City's Main Street, she's ready to take tourism efforts up a notch.
"It's just a natural next step," she said, to convert Howard's small tourism office to a full convention and visitors bureau that can help sell more hotel room stays. She said that when the new revenue is dedicated to that use, "it's acceptable to the industry."
Peter Mangione, general manager of the Mangione family-owned Turf Valley Hotel and Resort in Ellicott City and a tourism board member, said he agrees with the move. "Nobody wants to raise taxes," he said, but the new money would allow the tourism council to "hire a sales staff to sell the county," instead of being a passive agency.
Three other local bills seek a total of $1.1 million in state bond money, while two other measures sponsored by Del. Warren E. Miller, a Republican, seek approval for enabling legislation to allow the county to authorize whiskey-tasting events at liquor stores, and a separate measure giving permission for up to five slot machines at the Ellicott City VFW post. The bond bills would funnel $500,000 each in new state funding to development of Blandair and Troy Hill parks, while providing $144,000 for renovations to a group home owned by the ARC of Howard County.
Overall, the initial list of six Howard measures is far less than the roughly 20 local bills requested in an average year, but with legislators preoccupied with the state's $1.6 billion revenue gap next fiscal year, requests are limited. County residents will get their chance to tell Howard's 11 state legislators what they think at a public hearing at 7:30 p.m. Jan. 10 at the George Howard Building.
Miller said his bills were requested by liquor interests and the VFW, though the slots bill would apply to any members-only veterans post in the county.
John Gorzo, president of the Howard County Licensed Beverage Association and owner of Glenwood Wine and Spirits, said Baltimore County allows purchase of a separate liquor-tasting license, and Howard County store owners want to follow suit.
"It's housekeeping," Miller said. "Baltimore County started the ball."
If the bill is approved, it would allow store owners to buy a tasting license so patrons can attend tasting events, but no one could get more than four free one-ounce drinks. Wine and beer tasting is already allowed, and Gorzo said he expects no opposition from restaurant owners, who last year won permission to sell bottled wine to dinner patrons.
Miller said the Ellicott City VFW off Old Columbia Pike wants the slot machines to help boost membership and attendance at the facility. Several Eastern Shore counties allow veterans groups the same privilege, Miller said. The post would not profit from the gambling, he said, and has agreed to donate its share of receipts to charity.
But the slots bill could face significant opposition, according to Del. Guy Guzzone, a Democrat.
"This is a long-standing debate that goes on in the legislature every year," Guzzone said, but "the collective will of the legislature has been to not allow them in new places. It's part of the whole slots debate." Requests have been rejected for several other counties in the past few years, he said.
The hotel tax increase might also draw some criticism from Republicans, but several Democrats said they'd be inclined to support it.
"What I've seen of these dedicated-funding schemes is a one-on-one replacement," Miller said. If a tax increase is granted for a particular purpose, the government eventually takes an equal amount away when a fiscal crisis strikes. Fellow Republican Del. Gail H. Bates sounded less skeptical, acknowledging that tourism officials have sought more revenue for several years, but said she'd wait until hearing from the public before making up her mind.
But Guzzone, state Sen. James N. Robey, delegation chairwoman Del. Elizabeth Bobo and Del. Frank S. Turner all indicated they could support the tax hike.
"I'll probably be supporting it," Bobo said.
"If it's competitive with other counties, I'd support it," Turner added.
Guzzone and others agreed, "I think it's a good idea," Guzzone said. "I think it could be a real boost to [hotel] bookings."
Robey noted that the tax "doesn't impact Howard County homeowners or taxpayers; I know they [members of the tourism industry] need money," he said.