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Jacksonville lodging revenue is up By Tony Boom Sep 05, 2022 01:00 AM A A The Chamber of Commerce will get a reduced percentage of lodging taxes, the overall amount it gets won’t drop Peggy Dover refills brochures at the Jacksonville Visitor Information Center next to the Post Office in downtown Jacksonville. [Andy Atkinson / Mail Tribune] Jacksonville's Visitor Information Center next to the Post Office downtown Jacksonville. [Andy Atkinson / Mail Tribune] Increased lodging tax revenues from Airbnb payments have changed the way that the city of Jacksonville distributes the funds, with the Chamber of Commerce taking a reduced percentage of the total. Jacksonville City Council unanimously passed a resolution Aug. 16 that gives the chamber 30% of the lodging tax revenues for the current fiscal year rather than the 50% it received for operation of the Visitors Information Center previously. Last year’s lodging revenues totaled $238,000. Using 50% of the money collected resulted in an increase from $81,700 in the fiscal year 2017-18 to $118,755 in 2021-22 for the center. “If the decision were made by the City Council to reduce our funding, we would no longer be able to compete with other towns in the Rogue Valley and other destinations in Oregon,” said Amanda Moreia, director of the chamber at an Aug. 2 council session. “Any reallocation of funds away from our current and planned efforts will bring a substantial negative impact on businesses that count on us for marketing support.” Chamber officials use the money to run the center but also for promotions and activities, said Moreia. She said the organization had been fiscally conservative for several years during trying times. New efforts to promote the town would be impacted by the cuts. The chamber was looking forward to ramping up marketing plans with publications, social media, events and more. The change will keep the overall amount paid to the chamber around the same as it received in previous years for operation of the center, due to a huge increase in lodging taxes, Mayor Donna Bowen said in a written statement. Bowen stated the money is allocated for center operations and is not intended to support other activities. In addition, the city has continued to give Transient Lodging Grant Fund awards to the chamber for advertising, marketing and other expenditures, including Victorian Christmas, helping purchase the Trolley and expenses attached to its maintenance and operation. The city also provides use of the Depot Building on Oregon Street for the information center. At the Sept. 6 City Council meeting, the management agreement with the chamber will be explored by the council. Moreia said a new management agreement needs to address all the work the chamber does, not just operation of the center. City Council said the reduced percentage will be for one year to allow the city time to learn more about how the chamber and center operate, and for the chamber to provide a clear picture about its finances when the change was approved by the council Aug. 2, before the resolution adoption. Bowen called for the chamber to hire a professional bookkeeper, saying the information given to the council made it hard to separate out what they were doing. Under the new rules, 20% of the taxes will go for beautification, enhancements of travel routes, cultural and visitor facilities and promotion of visitor-related activities, events and services. Another 20% will go to city administration of tourism activities and facilities. Operation and maintenance of the visitor center will receive up to 30%, while 20% will go to a dedicated fund for parks and parking. Lodging operators and the city will each receive 5% to cover tax collection and administration. At the Aug. 2 meeting, City Administrator Jeff Alvis explained that center operations which exceeded the 30% amount could be paid out of the 20% set aside for tourism activities and facilities, if requested and approved. In 2018, the city received about $24,000 from lodging taxes collected from groups such as VRBO, Expedia and Hotel Tonight, which assist property owners in renting space to tourists, Finance Director Stacey Bray reported. But the city did not have an agreement with Airbnb until 2019. Revenue from Airbnb taxes was $53,000 in fiscal year 2019-20, $64,000 the next year and $109,000 in the fiscal year ending June 30. Total lodging revenue was $238,000 for the latest fiscal year. The city lodging tax rate is 9%. From 2015 through 2019, lodging tax revenues varied between $140,000 and $165,000 per year, with the chamber receiving half. The city’s Budget Committee recommended the reduced percentage for visitor center funding when it met in May. City councilors studied the center funding issue during work sessions May 17 and June 21. The Transient Lodging Tax Committee, in a July 17 session, recommended that the center allocation be kept at 50%. The city’s adopted budget for the current year listed a 30% distribution. Citizens who have questioned the decision wondered whether the city’s allocation might be used to finance a museum, Bowen wrote in her response. She noted that the council is studying the possibility of starting a museum operation. Lodging taxes might be one of many sources of funding, she said, adding that many requests for a museum have been received from both residents and tourists. Reach Ashland freelance writer Tony Boom at [email protected].