Polk, Saluda, Tryon ask state for special tax district

COLUMBUS — Polk County, Saluda and Tryon are seeking to receive more occupancy tax by creating a joint tourism development authority and the final step in negotiations was recently approved.

The Polk County Board of Commissioners, Saluda City Council and Tryon Town Council each approved a resolution requesting North Carolina approve a local act to modify the occupancy tax in the two municipalities and county in order to create a special tax district and to levy an occupancy tax of up to 6 percent within the new district.

Polk County approved a resolution last week, while Saluda approved the resolution on Monday and Tryon on Tuesday requesting the local act. It was the final decision for the towns to join the county’s TDA, with both communities  and the county expecting to collect more in occupancy tax. Saluda and Tryon will also no longer have to collect the tax, as the county will take over collection for all three entities.

The new TDA, once approved by the state, will mean the county will collect 6 percent of occupancy tax throughout the county and in every town except Columbus. Columbus chose not to join the new authority.

Polk County Manager Marche Pittman said the act is scheduled to go before state legislature sometime in June

Saluda and Tryon currently are able to collect 3 percent of occupancy tax in their towns, while the county collects 3 percent from overnight businesses, such as hotels, motels, bed and breakfasts and short-term rentals in all three towns, as well as in the county.

An interlocal agreement between the three entities has already been approved, which states the county will give each town 5 percent of their own occupancy tax to use at their discretion as long as it meets the laws of use for the promotion of tourism.

The new tax district should mean more revenues for the county as well, as it currently only collects 3 percent throughout the county.  The local act is asking for 6 percent, which is the maximum that can be collected.

During Tryon’s meeting Tuesday, Town Manager Zach Ollis said the town has completed its final negotiations, and said if commissioners want to go along with the new TDA, they will have to approve the resolution asking the state for a local act. 

All entities approved the resolution unanimously.

“This is a joint resolution between Polk County, the city of Saluda and the town of Tryon seeking an act to modify our tax district and to allow us to join together to create a special tax district,” said Polk County and Saluda attorney Jana Berg. “This is a prerequisite to the general legislature introducing the bill.”

Berg also explained that the county and towns have already approved an interlocal agreement that establishes the TDA board and how the county will earmark Saluda and Tryon’s occupancy tax collections, with the towns being granted funding for their own projects. She also said a grant committee will be formed within the new TDA to distribute the town’s occupancy tax money.

The new TDA will be established following the local act being approved by state legislature.

The county’s new TDA will include three members appointed by the Polk County Board of Commissioners, one member appointed by Tryon Town Council and one member appointed by Saluda City Council. The executive director of the Polk County Tourism Development Authority will also be an ex officio, nonvoting member.

Of the members, at least 1/3 of the members will be individuals affiliated with businesses that collect occupancy tax in the county and at least half will be individuals who are currently active in the promotion of travel and tourism in the county.