Cities, groups condemn bed tax proposal

SANDUSKY — Local and statewide organizations, officials and businesses have sent out a barrage of letters and resolutions protesting a proposal to expand the way that bed tax money can be used. Erie County commissioners had originally proposed an amendment to the state budget that would have allowed commissioners in certain counties, including Erie County, to have control of up to two-thirds of the local lodging tax. The more recent version of the proposal, included in the Ohio Senate's budget bill, gives control back to local tourism boards but authorizes bed tax money to be spent for public safety, infrastructure and economic development in addition to the usual use of the money for promoting tourism. A decision to approve such spending would be left up to local tourism boards. Good for everyone? The latest language is authored by state Sen. Theresa Gavarone, R-Bowling Green, who has described the language as a compromise. Gavarone said this week that the fate of the proposal will be decided soon. "The budget is still in conference committee, and it should be completed next week," she said, referring to the House-Senate conference committee hashing out the final version of the budget. The budget must be completed by the end of June. But a variety of tourism-related groups and individuals say they still oppose the proposal. Eric Wobser, CEO of the Greater Sandusky Partnership — a regional chamber tasked with delivering comprehensive economic development services — released a statement, which underscored how bed tax dollars are a local issue and should not be decided by state lawmakers. "This issue should be addressed locally, not at the state level," Wobser said. "It's critical that any conversation about redirecting lodging tax revenue includes transparent dialogue with the businesses that generate it and those directly impacted. We welcome the opportunity to engage in meaningful discussions about how these dollars can be used most effectively for the benefit of our region." The partnership also released copies of letters opposing changes in state law on how bed tax monies should be spent. The letters and resolutions in opposition include documents from businessman Jim Sortino, Huron Mayor Monty Tapp, Erie County health commissioner Pete Schade, Perkins Township trustees, Sandusky city commission ex officio mayor Dick Brady, Vermilion Mayor Jim Forthofer, the villages of Oak Harbor, Genoa and Elmore, Bay View Mayor Larry Gwinner and the Ottawa County commissioners. In addition, the Ottawa County Improvement Corp. also opposes the proposal, the partnership said. In his June 15 letter to Gavarone, Sortino said nothing should be decided without including discussion with all of the affected stakeholders. "The original bill and now its amended version were drafted without meaningful consultation with the business community or the tourism-related entities directly impacted by the bed tax," Sortino wrote. "True compromise requires inclusive dialogue with all stakeholders, yet the voices of those who generate and depend on these funds have been largely excluded. The amendment does not address this critical flaw, and labeling it a 'compromise' is misleading when key parties have not been part of the discussion," he wrote. In addition, 11 county convention and visitors bureaus from across the state that could be affected by the legislation, including Shores & Islands Ohio, sent a letter to legislative leaders opposing the change and criticizing the Erie County commissioners. "Erie County has other options. They recently returned $8 million to the voters. If they needed the money, then they should have kept it," they wrote. Commissioners also could raise the sales tax, the letter notes. "Returning funds and not increasing the sales tax is popular, so they are instead asking the legislature to allow them to apply pressure to the (convention and visitor's bureau) to turn over funds," they wrote. Commissioner comments Erie County commissioner Matt Old emphasized that the latest proposal keeps decisions in the hands of local tourism bureaus. "I can't see why anybody would be against that," he said. Old and other supporters of the proposed change have argued that heavy tourism puts a burden on local services and that it's reasonable to spend some bed tax money to relieve those burdens Additionally, Old said the current proposal is a genuine compromise. He said that other proposals in Columbus that had been rejected included a plan to eliminate all funding for convention and tourism bureaus and simply give the money to county commissioners. The partnership plans to host a public forum on local tourism at 5:30 p.m. Monday at Mylander Pavilion, 223 W. Shoreline Drive, on Jackson Street Pier in downtown Sandusky. Attendees are asked to register at the group's website, greatersandusky.com — look for "GSP Events" under the "engage" tab at the top of the page.