Sylva town leaders are considering a lodging tax for hotels, a move they believe would increase tourism.

Town leaders say the tax will generate about $25,000 a year that officials can rely upon for promotion and advertising.

“We are looking at ways to expand revenue for the town of Sylva without taxing its residents,” Mayor Brenda Oliver said.

All money generated from the tax must be used to promote the town through travel and tourism. All visitors who stay at a hotel or vacation rental in Jackson County pay a 3 percent tax. If the town imposes its own occupancy tax, visitors who stay at a hotel in the city limits will be required to pay an additional 3 percent. To implement the tax the town would have to have special legislation approved by the North Carolina General Assembly.

Oliver says by imposing a lodging tax the town will be able to have money to promote tourism.

“We have never used taxpayers dollars for tourism development,” she said. “We have not put any money into advertising because of other priorities.”

Oliver says the town has been lacking when it comes to self-promotion.

“I see this as a possibility to accomplish it,” she said.

Additionally, the occupancy tax will allow the town to spend money on capital expenditures such as installing restrooms for visitors.

However, some are opposed to the idea. Town leaders began considering imposing the tax in October 2007. During this time the board presented its idea to members of the county’s travel and tourism authority (TTA).

After reviewing the information, board members of the TTA and the chamber of commerce say the tax is not needed.

“Both TTA and JCCC board members voiced serious concerns that there appears to be no justification for such a tax, nor any specific reason for its proposed creation,” wrote board members of the TTA and chamber of commerce to Sylva town leaders in November 2007. “The current system of promoting travel and tourism in Jackson County certainly is not broken. The TTA actively promotes Sylva on a daily basis with a consistent county-wide marketing campaign that attracts visitors to all of Jackson County. There is a highly successful working relationship between the Jackson County Travel and Tourism Authority, the Jackson County Chamber of Commerce, the Cashiers Chamber of Commerce and the Cashiers Travel and Tourism Authority that promotes the whole of Jackson County. Imposing such a tax in Sylva would fracture that successful relationship and prove to diminish promotion of Sylva, not enhance it.”

Even though a few months have passed since this issue was discussed, TTA and chamber members have not changed their minds about the tax.

“At this time we have not changed our opinion,” Jackson County Chamber of Commerce and Travel and Tourism Authority Director Julie Spiro said.

Oliver says if the town does pass the tax it will not hurt work done by the county’s tourism authority.

“This is in no way competition with the TTA,” she said.

Oliver says she has been researching this issue by talking with mayors at various municipalities in Western North Carolina. “They are advising me to proceed with the feasibility of this idea,” she said.

Franklin Town Board members just enacted a 3 percent lodging tax last month. The tax will go into effect starting May 1. Town leaders are working on developing a tourism authority to oversee the expenditures. The board is expected to appoint one at its April meeting, Decker said.

Sylva Town Board members are planning to discuss the tax at the April 3 meeting.