FRP tax: Impact on Blue Ridge Cozy Cabin

Public comment presented at the July 18 Henderson County Board of Commissioners meeting, from John and Dianne Gallenberger (read it all):

To: Henderson County Commissioners

From: John and Dianne Gallenberger, Proprietors, Blue Ridge Cozy Cabin

Re: Increase to Occupancy Tax

We are pleading with you to refrain from implementing the 20% increase in the occupancy tax, taking it from 5% to 6%.

We offer a single cabin as a vacation rental. Most of our guests find us through the Internet. Almost all of them compare several lodging choices before selecting one. Price is a critical element of their comparisons.

We are often in competition with similar lodging in Buncombe County. There, owners with fewer than five units pay no occupancy tax. A 6% occupancy tax would put us at a disadvantage of over $50 for a weekly rental. This definitely would cause us to lose more business to Buncombe County.

When we lose a week’s rental, we suffer a direct loss of about $850. Henderson County loses its current 5% occupancy tax and its 2% sales tax for a loss of $59.50. The point is we all lose, including the many retail businesses our guests use. Our lost guests are patronizing businesses in Buncombe County instead.

The Henderson County Visitors Bureau has been well managed financially for the past several years. There is good reason to believe they could do well at their prior 4% rate of tax and you should strongly consider reducing the current tax to that level. Increasing the rate to 6% is unwarranted.

Let Flat Rock Playhouse correct its own mistakes which have caused it to lose to much of its donor base, volunteer staff and audience. Don’t give in to their plea for taxpayer assistance.

Thank you.