North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S132

Introduced

2/21/25

Refer

2/24/25

Caption

Swannanoa Valley TDA

Impact

The establishment of the Swannanoa Valley Tourism Development Authority will centralize efforts to promote tourism in the area. Tax funds will primarily be allocated toward marketing and developing tourism infrastructure. The authority is designed to manage these funds effectively, with restrictions on their use for operational expenses, thereby aiming to enhance the return on investment for tourism initiatives. This is expected to increase patronage for local accommodations, thereby benefiting local businesses and the broader economy of Buncombe County.

Summary

Senate Bill 132, known as the Swannanoa Valley Tourism Development Authority Act, proposes the establishment of a new tourism development authority within Buncombe County. The bill allows the Buncombe County Board of Commissioners to levy a room occupancy and tourism development tax of up to two percent on gross receipts from rental accommodations. This additional revenue is aimed at promoting travel and tourism, further enhancing economic development in the region. The bill outlines specific provisions regarding the collection, administration, and distribution of the tax revenue, ensuring that funds are used solely for tourism-related initiatives, which proponents believe will stimulate local economic growth.

Contention

Despite the potential benefits, there are points of contention surrounding the bill. Critics may argue that additional taxation could burden rental property owners and affect 房东 (hosts) in the area. Moreover, the bill's limitations on how funds can be distributed and its requirement for tax revenue to be used only within designated purposes could potentially restrict flexibility in addressing diverse local economic needs. Some community members may seek broader discussions to ensure the authority’s goals align with the community’s vision for sustainable tourism and economic balance.