Greater Cheyenne Chamber of Commerce Business Journal Q4 2014 | Page 42

The Lodging Tax: Unsung Hero of the Cheyenne Economy By: Scott French, Little America Hotel & Resort An unsung hero for Laramie County is on the ballot this November 4th. It helps bring in millions of dollars each year, provides thousands of jobs, and contributes substantial taxes. Yet the hero does not cost you or me one cent. The hero is the Laramie County lodging tax. This tax is paid by visitors who stay overnight in our hotels, bed & breakfasts, and campgrounds. No local residents pay this tax unless they stay in our lodging establishments. Is this a new tax? No. The lodging tax has been in existence in the county since 1987, and voters have renewed it numerous times since. The lodging tax will be up for renewal on the November 4th ballot. What are the funds used for? Visit Cheyenne uses these lodging tax funds to grow tourism by purchasing advertising, pursuing meetings and bus tours, operating the Trolley, and maintaining visitor centers in Pine Bluffs and Cheyenne. Visit Cheyenne supports community events such as the New Year’s Eve Ball Drop, Celtic Festival, Cheyenne Depot Days, and others. Why do we need the lodging tax? Competition for the tourism dollar is fierce. Communities throughout Wyoming, Colorado, and the United States use similar lodging taxes and are promoting themselves very aggressively. Without the lodging tax, we would have no unified effort to compete for these tourist dollars. Is the tax working? Yes. With the help of the lodging tax, Laramie County visitor spending has grown 35% in the past 4 years. Our expanding business base, hospitality business efforts, and the promotions of Visit Cheyenne and the Wyoming Office of Tourism are solidly contributing to this great growth rate. What are the benefits of the travel industry? In 2013, travelers spent $357 million in Laramie County, up 7 % over 2012 and double the state’s growth rate of 3.5%. In addition, our 2013 lodging occupancy rate was 64% compared to 57 % for Wyoming and 62% for the United States. This growth is continuing in 2014 as well. Our travel spending ranks 2nd among Wyoming counties and supports 2,950 local jobs. If the travel industry were a single business, it would rank as the county’s third largest employer behind F.E. Warren Air Force Base and the State of Wyoming. Visitors pay sales and gas taxes that support our schools, roads and other services. In fact, travelers pay 9.1% of our local sales taxes. Without travelers’ taxes, each Wyoming household would pay an additional $451 in taxes to maintain existing levels of government services. (Source: Dean Runyan Associates and Wyoming Office of Tourism) How does our tax rate compare? Our combined tax rate of 10% (4% lodging tax, 6% sales tax) is competitive with surrounding areas. PG 42 l Our Community