$$ Revenue from the innkeepers’ tax has to be spent to promote tourism.  The priority is to pay the Music Center’s mortgage and, if needed, operating costs to prevent the need for a taxpayer subsidy.

 

The State is funded primarily by sales tax, income tax, and federal funding. The tourism industry helps generate revenue from the sales tax. The county is primarily financed by income tax, property tax, and state funding. 

 

The county tax policy is to have a high-income tax rate (among the highest in the state) and low property tax (among the lowest in the state.)  The low property tax supports commercial businesses (including tourist rentals) and residents. 

 

The mortgage can also be paid with revenue (ticket sales) generated from the BCMC which can reduce the amount of excess revenue that is distributed to the taxpayers.  The current distribution of the excess revenue from the BCMC is 75% to the Community Foundation and 25% to the taxpayers. A proposed change is 50/50. The taxpayers assume all the risk.  As a result of COVID, federal (and state?) taxpayers provided a grant of 2.7 million and county taxpayers $239K.  

 

An issue with the CVB over the years has been with transparency. How was the money spent?  Which areas were perceived to be the priority for funding?  What were the outcomes?

 

Commissioners and Council appoint members to the “CVC.”  Commissioners are responsible for a “vision” for tourism that should be referenced in the County Comprehensive Plan. The Council is responsible for reviewing and approving the CVC budget on how the revenue from the innkeeper’s tax should be spent.

 

Commissioners, Council, CVC, and CVB all agreed to use the revenue from the innkeeper’s tax as collateral to build and operate the Brown County Music Center (BCMC) and establish a 7-member management board.   This board determines the distribution of the excess revenue from the BCMC.  Only two elected officials – a commissioner and a councilman are on this board.

 

The CVC is responsible for contracts to include the one with the CVB. CVC members are accountable for how the money is spent, including requiring audits on finances and performance.  CVC members can be removed from their positions for “cause.” This would include failure to perform their fiduciary responsibilities.

 

Not all counties with an innkeeper’s tax have a “CVB.”  Strategies can vary by county, and some manage their own Visitors Center.

 

County taxpayers are expected by the State to pay the cost of tourism-related expenses such as police and emergency services that include providing services to the state park. Any arrest and prosecution-related expenses are also at the expense of county taxpayers.

 

 

Sept 10, 2024. Starting the conversation: CVB 1st in series of meetings outlines agency’s purpose, Brown County Democrat.

 

July 17, 2024 –  Joint Working Session Notes, July 17, 2024 – 9-noon, Part 2  Tourism Marketing and Music Center Management

• • CVC_CVB Mgmt of Revenue from Innkeepers Tax – County tourism industry in flux.

Aug 13, 2024. Brown County  Democrat:   CVB and CVC to set new contract