05/16/2024
Two Productive Meetings
The Budget and Personnel Committee met in Council Chambers, with Denise Bowden, Chris Bott (Chair), and Bill McComb, and Mike Tolbert, Town Manager. Four people spoke, Tina Zoller, Lance Stitcher (Seaside Vacation Rentals), Patty Woodhurst (Coastal Shore Vacations) and myself. Tina and I spoke about residents concerns about neighborhoods changing, stress on the town's infrastructure, lack of long-term rentals, and inequities in taxes. Lance suggested that the increase in rental properties was self-limiting due to supply exceeding demand, Patty thinks that demand will continue to grow, particularly in higher end rentals. Mike Tolbert had consulted with the Town's legal advisors about tax increases allowed, and the 3 Council members suggested various ways in which appropriate taxes could be adjusted to maintain or increase revenue without adding additional taxes to residents. Possibilities include raising the Transient Occupancy Tax, currently at 5% on hotel and short term house rentals, adding a small tax per day, taxing some properties at a higher rate, and raising the maximum Business Tax. Currently all businesses, including property owners who rent their properties for short term rentals, are required to have a Town Business License. The minimum annual tax is $50, the maximum is $500 which means that any gross revenue over $38,000 is not taxed. This includes all of our large motels, camp grounds, and obviously many other businesses. Chris Bott went even further, suggesting that resorts with individual housing cottages should each have their own business license because they are, like private homes, short term rentals and should not operate under one business license.
There was almost total agreement on possible remedies: that there should be no real estate tax increase on non-rental residential properties, that we need more long-term housing particularly for teachers, police and other public employees, that this will be a complicated balancing act, that there should be no inequalities, and that while we need to continue to support our tourists and the businesses that serve them, visitors and perhaps some businesses should contribute more to the town's revenue.
It gratifying that we were all on the same page, citizens, rental company owners, the Town government, and the 3 council members. There will undoubtedly be different opinions along the way but I am optimistic.
Tina and I, along with Bob Zoller also spoke at the Planning Commission meeting, encouraging them to plan and zone in such a way that we can continue to be both a small town and a vacation destination. Mike Tolbert also announced that he will soon be posting for a Town Planner and that the position is in the FY 2025 budget.
If you want to comment on this issue, you can speak at the Council Workshop Meeting, this Thursday (tomorrow) at 6pm or at any Council meeting.