Two James City County conservatives, usually close allies, split over a bill intended to promote Historic Triangle tourism, disagreeing on questions of core functions of government and local tax authority.
In what she said was her first public disagreement with one of Virginia’s most powerful politicians, Del. Brenda Pogge, R-Norge, said she could not support Senate Majority Leader Thomas K. “Tommy” Norment Jr.’s proposal for a sales tax surcharge to finance a tourism program.
Despite her opposition, Norment’s bill passed the House Finance Committee in a 10-9 vote and now goes to the full House of Delegates. It has already cleared the Senate.
Norment’s proposal calls for a 1 percentage point surcharge to state sales taxes in Williamsburg, James City County and York County.
Half of the $25 million to $30 million a year to be generated by the tax would go for a marketing effort to promote the Historic Triangle. The rest would be divided among the city and the two counties for other public purposes.
The bill requires Williamsburg to eliminate recent increases in hotel, admissions and meals taxes. The counties would repeal a $2 hotel tax now used to promote tourism.
“I don’t think you’ve seen many bills that supplant three or four other taxes,” Norment told the committee, adding that his proposal is backed by all three local governments, as well as associations, nonprofits and businesses involved in tourism.
“We haven’t heard from one citizen or one citizen’s group,” Pogge said, adding that the surcharge would fall on every one of her 80,000 constituents.
Pogge said she felt it was wrong for the General Assembly to enact a tax on behalf of a locality.
“It undermines the accountability that I believe elected officials have toward their citizens,” she said.
Pogge said she did not feel promoting tourism was a core function of government.
Norment, noting that some 12,000 people in his district work in tourism, disagreed: “I can’t think of anything that’s more of a core function of government that keeping people employed and promoting the economy.”
He said the Historic Triangle needed to work harder to develop itself as a tourism destination, noting that both Virginia Beach and Richmond currently spend more promoting their attractions.
“We’ve got to stop whining and we’ve got to stop begging,” he told the committee. “The area desperately needs help, and this is the only way I see to do it.”
Norment has noted that the bill’s approach, which he described as self-help, is similar to the regional sales tax surcharges dedicated to the widening of Interstate 64 and expansion of the Hampton Roads Bridge-Tunnel.
He said it would ease pressure on local governments to raise property taxes and could benefit the taxpayer-supported Jamestown-Yorktown Foundation by boosting visits to its Jamestown Settlement and American Revolution Museum at Yorktown.
“Yes there are 160,000 people in the counties and Williamsburg” who would pay the surcharge on purchases in the Historic Triangle, “but there are more than 3 million tourists who will pay this sales tax,” said Karen Riordan, president of the Greater Williamsburg Chamber and Tourism Alliance.
The committee’s narrow approval was not a big surprise, Norment said later, since the tax-writing panel has long resisted suggestions about sales tax surcharges or other tax increases.
While Norment did not sway Pogge, three other Hampton Roads area delegates — Emily Brewer, R-Suffolk, Jay Jones, D-Norfolk, and Joseph Lindsey, D-Norfolk — voted for the measure.
