Lodging Tax
by Tom Buchanan
June 4, 2010

Lodging Tax At Tuesday’s Council meeting there was an amusing debate during Community Marketing Commission CMC session, which was born from the lodging tax. I have never been a fan of the lodging tax. My biggest concern was that we were imposing a tax with no clear idea of how the money was to be used. The session only reinforced my concerns.

The CMC did a great job of providing what they were directed to do by the city council in January which was ‘a formula for functional distribution of funds.’

The city wants to distribute funds based on specific criteria to various organizations for events that may bring tourists to Loveland. What I object to is that the city would be paying the organizations to fill financial holes in their plans for the events. This is nothing more than subsidizing the organizations by a grant process. In other words, the government will be in the business of picking winners and losers.

The Loveland Chamber of Commerce and Engaging Loveland had a smarter plan for how to best use the tax dollars generated by the Lodging Tax. Their idea was to be proactive with the funds instead of reactive. If the tax is gong to be used to promote Loveland then it should harness the greatness of Loveland and promote that ideal to tourists and event planners near and far. It was refreshing to see them admit they were wrong about wanting the money quickly and suggest a second look.

I have always thought it was the charge of Chambers of Commerce to promote their home town which would generate business for its members and all would be well. When Engaging Loveland was formed it took on the mission of promoting Loveland and a myriad of events and has done a superb job of it.

If the idea of the lodging tax is to fill hotel rooms with generous tourists with open wallets then I think the best approach is to take the advice of the Chamber and Engaging Loveland and to slow down and reexamine the best method for using the newly found tax dollars. From the discussion at the council meeting it would have been most beneficial to the citizens of Loveland if this dialog would have taken place before the measure was put on the ballot.

Tom Buchanan

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