Murphy eyeing tourism authority

    Murphy – Town lawmakers want to establish a tourism development authority that will solely focus on Murphy and use additional tax dollars to increase the number of amenities available to local residents and tourists alike.
    Council members passed a resolution on July 6 asking state legislators to enact a law creating a Town of Murphy Tourism Development Authority that would levy a 2 percent room occupancy tax on short-term rentals in addition to the tax already on the books.
    Many North Carolina TDAs impose a 3-6 percent room occupancy tax on short-term rentals. However, the Cherokee County TDA only charges a 4 percent tax. Instead of asking the county TDA to increase that tax, town lawmakers want to establish an additional tourism body that would allow the collected tax to be used solely for Murphy.
    If council receives its wish, Murphy would not be the only town in the state that has a TDA separate from its county tourism authority. The Town of Franklin has an authority that manages tourism initiatives in addition to Macon County, with each body charging a 3 percent occupancy tax.
    “I don’t think an additional 2 percent tax will dissuade most people from staying in town; at least that’s not what I’ve seen in other towns that have independent TDAs from their counties,” Town Manager Chad Simons said. “Many towns in our state are going in this direction or have already.
    “I think this is a logical step for our town, especially since we were accepted into the Downtown Associate Community Program this past winter.”
    The county TDA uses collected occupancy tax solely for tourism marketing and advertising efforts, and works with the Andrews and Cherokee County chambers of commerce. However, town lawmakers are asking state legislators to allow the new TDA broad use of the funds, such as amenities that attract tourism.
    Officials say infrastructure problems have hindered the town from upgrading amenities that could not only improve tourism, but also increase downtown foot traffic by locals. An additional tax would allow town leaders to use property and sales taxes for infrastructure needs, while using the additional occupancy tax for tourism needs other than marketing and advertising.
    “We’ve found that we have more infrastructure issues than we expected to have, and the last thing we want to do is increase property taxes,” Mayor Rick Ramsey said. “[This tax] is not going to save the world, but it will help us continue to make sure we have infrastructure in good working order while also supporting things that draw people to Murphy.
    “We have to invest and do everything we can for the tourism economy because it drives everything else.”
    TDA officials said they welcome the idea of working with an additional tourism body.
    “I hope that we’re able to work together in the future and continue to benefit the community,” said Cabrina Scionti, marketing manager for the Cherokee County TDA.