John J. Fieseler, executive director for the Tourism Council of Frederick County, is pleased to finally have the long-awaited tax on hotel and motel room rates in place.
"It feels great," Fieseler said. "The advantage this time is we really had 15 months. This allowed for more discussion to take place."
A tax that caused a mountain of debate between the representatives from the hotel/motel industry, the local Tourism Council and lawmakers four years ago has finally come to fruition in Frederick County.
The Frederick Board of County Commissioners in a 4-to-1 vote adopted the new 3 percent tax on Thursday. They had the authority to set the tax as high as 5 percent. The current rate remains in effect until commissioners decide to change the rate.
Commission President John "Lennie" Thompson Jr. (R) was the lone vote against the fee.
In 2000, the previous board of commissioners included a hotel/motel tax in the package of bills it sought from the county's delegation to the Maryland General Assembly. But it caused controversy once it reached the hands of Frederick lawmakers.
Although the delegation voted to support the measure, members bickered about the bill. The county's two senators at the time, Timothy R. Ferguson (R-Dist. 4) of Taylorsville and Alexander X. Mooney (R-Dist. 3) of Frederick, spoke out publicly against the tax and successfully killed the bill.
But thanks to months of meetings, discussion and debate the room rate tax at area hotels and motels is slated to take effect in Frederick County on Aug. 2.
Money collected from the tax will go directly to the Tourism Council and its efforts to promote tourism in the county. The county will receive a small percentage to cover administrative costs.
A portion of the tax money collected will go toward a new visitor's center.
At 3 percent, the tax is expected to generate an estimated $562,100 annually. But for the current fiscal year 2005, the tax could generate as much as $750,000, depending on the amount of tourists visiting Frederick County.
According to the new ordinance, every two years the internal auditor of the county shall conduct an audit of the Tourism Council's financial records and report their findings to commissioners.
For this fiscal year only, the Tourism Council will also give a portion of the revenue generated from the new room rate fee to 11 non-government agencies that commissioners determined promote tourism in the county.
Representatives from the Tourism Council and commissioners recently signed an agreement stipulating that $123,230 be paid to the 11 agencies. They include: the Brunswick Veteran' Day parade; Civil War Medicine Museum; the Delaplaine Visual Arts Center; the Farm Museum; the Frederick Festival of the Arts; the Frederick Arts Council; the Historical Society of Frederick County; and Frederick County Landmarks. The Great Frederick Fair, Weinberg Center and the Frederick Downtown Partnership will also receive money.
Since the room rate tax will not be enacted until Aug. 2, commissioners forward funded money to the Tourism Council to pay the nonprofits.
But according to Fieseler, the method of funding the 11 nonprofits will change after this fiscal year, which ends June 30, 2005.
The agencies will mostly likely have to formally apply to the Tourism Council for funding. The council will then determine how much money each of the agencies will get from the room rate tax.
A committee has been formed within the Tourism Council to study how best to initiate the process next year, Fieseler said.
Meanwhile, Tourism Council members told commissioners at a meeting Thursday that they appreciate their work to enact the tax.
"We truly appreciate your efforts," said Mike Irons, president of the council. "We certainly look forward to promoting Frederick County."
Michael Henningsen, first vice president of the council and director of hotel operations with the Fairfield Inn by Marriott Courtyard by Marriott and Residence Inn by Marriott, agreed.
"We applaud your efforts to establish a tax for Frederick County," he said.
But the new room rate tax did not receive unanimous support from the board.
Thompson voted against enacting the fee. After the meeting, Thompson said he would have supported the measure if the money generated would be used to cut property taxes.
He does not support giving the money to the Tourism Council.
"I would have used it for tax relief elsewhere," he said. "It should have all gone to tax relief for the overburdened taxpayer."
But Thompson's colleagues do not agree.
"This is a real plus for economic development in the short end and in the long run a real plus for Frederick County," Commissioner John R. Lovell Jr. (R) said.
Commissioner Bruce L. Reeder (D) thanked representatives from the hotel industry for their help and support during the last 15 months.
"This is a great tool for a source of revenue for economic development in our county," he said.
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