Agenda Item SA
February 8, 2013
Michael Faden, Senior Legislative Attorney
Jacob Sesker, Senior Legislative Analyst
Bill 36-12, Taxation - Hotel/Motel Tax
Use of Revenues
The Joint Committee
recommendation (4-2; Councilmembers EIrich and
Riemer opposed, preferring to consider the Bill during FY14 budget deliberations):
approve without amendment.
The Conference and Visitors Bureau (CVB) is a §SOl(c)(6) non-profit organization. The CVB's
mission is to promote Montgomery County as a destination for visitors, including meetings and
conferences, conventions, group tour and leisure travel. Currently, at least 3.S% of the room
rental and transient tax revenue (hereafter "hotel/motel tax") must be used for the Conference
and Visitors Bureau. Bill 36-12 would amend County Code §S2-16 to increase that amount to
7%. The Bill makes no other changes to §S2-16 or any other provision oflaw.
Public /rearing testimony
The Council held a public hearing on January IS, 2013. The following individuals testified in
support of Bill 36-12: Kelly Groff; Trish Heffelfinger; Vira Safai; Paul Warnquist; Bob Daley.
Peggy Erickson, Heritage Montgomery, also submitted testimony.
In testimony, speakers cited several justifications for the requested funding increase, including
• Staffing at the CVB has not kept pace with increases in (County-supported) cultural
• Montgomery County is outspent by neighboring jurisdictions.
• The County must aggressively pursue market share in order not to lose market share to
Prince George's County or other jurisdictions with casinos.