State House to consider Johnston County, N.C., hotel tax bill 

By Paul Schuler 
Copyright 2001 The News & Observer
Article date: July 18, 2001
 

A House committee today will consider whether Johnston County should be included in a bill that gives more than a dozen local governments the authority to increase hotel taxes.

Sen. Allen H. Wellons, a Smithfield Democrat, originally had submitted Johnston County for inclusion in the bill at the request of the county's visitors bureau.

He said the bill would give the county commissioners "another arrow in their quiver" to raise revenue for a convention center.

But Rep. Russell Capps moved to hold a separate hearing on Johnston, responding to hotel owners and county commissioners worried about a potential tax increase.

"I'm not trying to undo something that the delegation down there wants," Capps said. " ... I just think these people need to be represented."

One commissioner said the board likely wouldn't use the authority even if it were approved.

Commissioner Fred Smith said board members are skeptical of how much revenue the convention center would bring in and are wary of using taxes to raise the money.

"I can tell you the board will not increase taxes unless there's a very good case for it," he said.

Officials from the Visitors Bureau still have a long way to go to convince the commissioners and the Johnston County House delegation the center is needed.

"I'm not as convinced that the need is there as some people," said Rep. Billy J. Creech, a Clayton Republican. "Just because someone else has one, does it mean we need one?"

Officials from the Visitors Bureau didn't return phone calls for comment.

Reluctant to take sides between the Visitors Bureau and the hotel owners and county commissioners, Rep. Leo Daughtry, a Smithfield Republican, said he hasn't taken a position on the bill.

"I'm caught in the middle," he said.

Hotel owners in Johnston County are also lined up against the measure. With the economy slowing down, many fear an increase in taxes could hurt business even more.

"People come in and they don't even want to pay the price of the room as it is," said Roy Mabe, manager of the Luxury Inn off Interstate 95. "It's slow now; with more taxes it'll be even worse."
 

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