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Reprinted with Permission of Dallas Morning News
Tourism groups set to fight area plan
By Rani Cher Monson The nation’s leading tourism and travel association opposes stadium financing methods that would impose taxes on people who rent cars and stay in hotels to pay for new sports arenas. The Texas Hotel & Motel Association also said it will fight the taxes proposed by state Comptroller John Sharp and Rep. Kim Brimer, R-Arlington, during the upcoming legislative session. Aubrey King, executive director of the Travel and Tourism Government Affairs Council, called the proposed taxes an "unfair burden." His organization criticized stadium funding proposals of 17 cities, including plans in Houston and San Antonio, that rely on some form of hotel or car rental taxes. "The stadium is benefiting the local community, so why not get the people to pay for it?" said Mr. King, whose organization represents the nation’s $440 billion travel and tourism industry. "It’s the local people who are attending the games." Mr. King said a 1995 survey by his group found that only 5 percent of travelers included a sporting event in their plans. Arlington hopes to lure the Mavericks and the Stars from Dallas if City Council members there are unable to reach an agreement with the owners of the teams to build a downtown sports arena. Mr. Brimer and state Sen. Royce West, D-Dallas, have devised competing legislation to allow cities to finance new facilities. Included in Mr. Brimer’s bill is a provision that would allow cities to approve a hotel and motel tax – not to exceed 2 percent. The legislation also would allow city officials to charge up to a 5 percent tax on people who rent cars. The money would be used to retire the bonds that finance the stadiums. Mr. Sharp believes city officials should rely on private funds to pay for arenas. However, if the Legislature allows cities to use public funds he recommends a 1 percent car rental and a 2 percent hotel/motel occupancy tax. Don Hansen, executive vice president of the state’s hotel and motel association, said the proposed taxes represent the "Boston tea party all over again." Mr. Hansen said it was simply wrong to expect tourists to be subjected to a tax increase they can’t oppose at the poll. "It’s unfair for sports stadiums to be built on the backs of people who can’t vote," he said. "Taxation without representation is corrupt." Mr. King added that the strategy of taxing out-of-town tourist amounts to taking advantage of people who can’t defend themselves. "This is a financing approach that is levying a significant cost on travelers from out of the city or the state," he said. "It’s easier to tax people who won’t vote in the election. What’s the risk of car-rental people marching on city hall?" Mance Bowden, legislative assistant for Mr. Brimer, said the auto and hotel taxes are merely options provided by the Arlington Republican’s bill. "They should scream about it when it comes up on the local level," said Mr. Bowden, referring to the national and state organizations that opposes Mr. Brimer’s proposal. "These are just options, and the voters have to approve them." Mr. West’s bill does not recommend using either of the controversial taxes, said Kwame Walker, an aide to the senator. Mr. Hansen said he fears the state- where tourism is the third-largest industry – could be hurt if hotel/motel taxes are raised any higher. Already, Texas cities on average have the highest hotel taxes in the country, he said. Arlington, Austin and Dallas impose a 13 percent tax on people. The taxes in Houston and San Antonio are even higher at 15 percent. The taxes in those cities surpass ones in Chicago, Boston, Denver, Las Vegas, New Orleans and Honolulu, Mr. Hansen said. "The fear is that conventions and tourist would stop coming here," Mr. Hansen said. Burke Pease, president of the Arlington Convention & Visitors Bureau, said he shared Mr. Hansen’s concerns. However, he said, the bureau hasn’t taken an official position on the matter. Bruce Neal, a spokesman for the Six Flags Over Texas theme parks, said he doesn’t believe a tax increase on beds or rental cars would hurt business. Nonetheless, he acknowledged that "a tax on tourists
who have no intention of attending a sporting event may not be altogether fair." |