Monterey Board of Aldermen unanimously approved the adoption of a three percent occupancy tax Monday night.
The tax funding comes from lodging and rentals in the area. Cultural Administrator Rafferty Cleary said the money generated from the tax is earmarked for economic and community development opportunities.
“I think it’s important to think about in the future as well with the potential we have for development off the 300 exit,” Cleary said. “And with sewer heading down that way not before too long. Of course, VRBOs, AirBnBs, all of those are included in this occupancy tax.”
The aldermen decided between two resolution options. One would resolution would create a tourism commission comprised of restaurant and hotel representatives as well as the Cultural Administrator and Mayor. That commission would make recommendations about tourism needs and wants to the Board. The other resolution simply defers that duty to the Board of Aldermen itself.
“I think the idea behind is it you have individuals on it who are in that business (…) and they see how those funds could be best used for tourism development,” Cleary said. “But it’s just the best practice and it’s not required for law. ”
The aldermen decided against the option of creating a tourism commission. Alderman Amy Martin:
“I don’t feel the need to establish that commission on this resolution,” “Because we actually have an economic development committee within our Board of Aldermen that could oversee this.”
Cleary said the tax is something the governor’s office and State Tourism Director are encouraging. He said a new law recently passed to make it easier for counties and municipalities to establish occupancy taxes, allowing for more tourism dollars to be generated.
Cleary said the county has a seven percent occupancy tax and the town of Monterey would be capped at three percent.
The tax will go into effect on January 1st, 2023.
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