Voters to decide fate of 2% lodging tax

Posted 10/29/24

Park County voters have not been the friendliest to proposed taxes, rejecting multiple proposed sales tax increases over the years. But the lodging tax — which is used to promote the county to …

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Voters to decide fate of 2% lodging tax

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Park County voters have not been the friendliest to proposed taxes, rejecting multiple proposed sales tax increases over the years. But the lodging tax — which is used to promote the county to travelers around the world — has been a consistent yes vote every four years since 1986. That trend will again be put to the test in this general election.

Counties used to be in charge of lodging taxes, with Park County voters opting to impose a 4% tax. However, Wyoming lawmakers overhauled the system in 2020 and imposed a 5% lodging tax across the entire state. Of that sum, 3% goes to fund the Wyoming Office of Tourism, which promotes the state as a whole, while the other 2% goes back to that county’s marketing arm. That local entity is the Park County Travel Council.

Counties also have the option of assessing an additional 2% lodging tax, which is what Park County residents are being asked to consider in this election. If approved, the overall lodging tax rate would remain at 7%, with 4% — the mandatory 2% plus the optional 2% — going to the travel council. If the measure fails, the rate will drop to 5%, with the Park County Travel Council’s funding effectively halved.

The lodging tax has historically enjoyed strong support, with nearly three-quarters of voters supporting renewal in 2020. But in the run-up to this election, local residents have been lobbying for and against the renewal in letters to the editor and on social media, debating its effectiveness in boosting local tourism and impact on county residents.

At a recent informational session in Cody, Park County Travel Council Executive Director Ryan Hauck outlined how the lodging tax is spent — roughly $3.04 million was collected in fiscal year 2023 — and answered questions.

“Almost 75% of the budget goes straight towards marketing and advertising the destination,” Hauck said. “That is where the bulk is, that’s how it’s always been.”

He also defended the longtime use of Nova Scotia, Canada-based marketing company VERB for a large chunk of marketing. While some, including former Park County Commission candidate Karin Richard, have questioned why the council doesn’t use local or regional companies, Hauck praised the company’s good pricing and reaction to the 2022 flooding in Yellowstone National Park. He said the firm pivoted to focus on convincing the national media the area was still open and not a “disaster zone.”

However, Wapiti resident Scott Weber — who’s emerged as a leading critic of the tax — doesn’t see the ads as having much value. He said most are about hiking and none about hunting, despite it being a big draw for people in the fall. 

“And Yellowstone is way overused, way overloved,” he said. “We’re advertising overloved things, and in Cody, in many cases, they can’t support the people who do come in.” 

Weber said he started opposing the tax after it was raised from its historic 4% to 7%. He also resents having to pay the rate — which is tacked on top of standard sales taxes — when he stays in the state. 

“When you start taxing something, people will use it less,” he said. “I’m infuriated I have to pay that tax every time.”

Weber added that, “Wyoming is so flush with money, it’s unconscionable to support any more taxes.”

The Park County Patriots and Conservative Roundup groups are also urging voters to vote no on the lodging tax. 

However, on the other side, the Cody Country Political Action Committee is encouraging people to back the measure and renew the 2% local tax.

New Cody Chamber of Commerce Executive Director Jennifer Thoma has been one of the main organizers of the renewal effort. At a recent Park County Travel Council meeting, she said the campaign is largely focused on enlightening voters about everything the tax pays for. 

“We are marketing it as, ‘what is it about?’” Thoma said. 

Forward Cody CEO James Klessens said the county welcomed over 984,000 visitors in 2023 and he said they spent over $507 million on groceries, food, souvenirs, museums, shows, rodeo, gas and hotel rooms.

“When it comes down to it, every business and resident of Park County receives the positive benefit of money spent in our community by our guests,” Klessens wrote in a recent letter to the editor.

Of the tax dollars that are collected, 90% goes to the travel council while 10% is returned to the county and municipal governments. In fiscal year 2024, the council spent early $1.98 million in unified marketing, $589,168 on destination development, $408,729 on administration and granted $395,677 to organizations ranging from the Powell, Cody, Meeteetse and East Yellowstone chambers to local events.

The destination development projects included installing new wayfinding signs around the county, helping install the new mural on Powell’s iconic bean mill and assisting with the restoration of the beet cellar at the former Heart Mountain War Relocation Center. 

The 10% returned to the county and municipalities totaled more than $400,000 in FY 2023 and was divvied up as a percentage of what was collected from those areas. That included $236,000 for the county’s general fund, $161,000 to Cody and just over $7,000 to Powell.

In its current FY 2025 budget, the council intends to partner with Cody Yellowstone Air Improvement Resources and attempt to restore Yellowstone Regional Airport’s connection to Salt Lake City. The council has pledged $100,000 — and urged the county to add $60,000 — toward a kind of subsidy known as a minimum revenue guarantee that could potentially entice Delta Airlines to return to Cody.

In all, the council spent $3.37 million on grants and programs in FY24. If the lodging tax renewal fails, the council would have much less to spend.

People can vote early at the Park County Courthouse in Cody through Monday, Nov. 4. Election Day is Tuesday, Nov. 5, from 7 a.m. to 7 p.m.

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