The view of the Stateline casino corridor from the Tahoe Blue Event Center in summer 2023. Room taxes generated at Stateline help pay the center's bonds, as well as recreation and economic vitality functions in Douglas County by state law.
Tara Addeo
On Tuesday night, Douglas County Parks and Recreation Advisor Debra Lang asked whether the panel should be concerned about the room tax that is one of the key sources of Community Service’s revenues.
Two residents at Jenifer Davidson’s State of the County address asked whether it would be worth approaching the Nevada Legislature to free up room tax monies for other things, such as roads.
“The majority of the room taxes are set by statute, so the Legislature dictates to the county how those funds can be used,” Davidson said. “There is a small percentage of the transit lodging that can be used for roads restricted by county ordinance, currently collected for parks and recreation and to support economic vitality, that could be used for other things. I’m telling you the juice is not work the squeeze.”
Davidson said she believed the amount of money would be around $100,000 that could be diverted to roads.
She said the largest portion of room taxes collected are at the Lake.
“Everything else is restricted by the state legislature and is used to support visitors authorities, our event center up at the lake, in addition,” she said.
El Dorado County in California is apparently under no such restriction, according to reporting in the Tahoe Daily Tribune.
The Lake Tahoe South Shore Chamber of Commerce, Tahoe Prosperity Center, and other outside agencies in El Dorado County were surprised in February with the board of supervisors’ decision to completely cut their transient occupancy tax funding and roll it into the general fund — a decision that may have lasting repercussions on tourism and business in the area. On Feb. 11, supervisors discussed an item on the agenda regarding a 10-percent tax on hotels, motels, and vacation rentals, with an additional 4-percent in the unincorporated portion of the Tahoe area of the county.
Like Douglas, about 66 percent of El Dorado’s tax is generated in the Tahoe Basin.
The board policy on the revenue gathered from this tax is to direct it toward impacts of tourism and economic development, with consideration for support of tourism and promotion activities, and continued support for grant fund allocations to support veteran programs.
However, the policy is also to prioritize impacts to county services and facilities and their funding before funding outside agencies. Since the 2021-2022 fiscal year, Chief Administrative Office representatives stated that there have been overall decreases in the revenue the tax brought in. For the 2024-2025 fiscal year, the tax brought in around $7 million, which was a decrease of $500,000 from their projections.
As a result of these decreases, the board policy, and shortages in the countywide budget that would require cuts whether or not outside agencies were funded.
Supervisors voted 4-1 to spend the money on public safety through those funds. District 5 Supervisor Brooke Laine was the only dissenting vote, proposing a more gradual set of cuts that went unsupported by the board.
“I am in support of the board’s priority to fund county services. I voted against the motion because I felt just ‘pulling the carpet out from underneath the outside agencies feet’ was rather inhumane,” said Laine in an email to the Tribune. “I preferred a step-down approach that would give those outside agencies a more appropriate period of time (two years) to adjust their budgets accordingly.”
The budget cuts affect the county’s Chamber of Commerce, Chamber Film Commission, the El Dorado Visitor Center, Lake Tahoe South Shore Chamber of Commerce, Tahoe Prosperity Center, Wagon Train, 50 Economic Alliance Membership, Growth Factory, Greater Sacramento Economic Council, Arts and Culture, and Save the Graves.
Tahoe Chamber Government Relations Director Steve Teshara expressed his confusion and disappointment in the board’s decisions.
“Funds don’t grow on trees,” said Teshara. “If the county is eliminating funds from tourism, I don’t know if they can have a realistic expectation for how those funds are expected to growBecause without actual promotion for visiting the county, those funds will decrease. This past fiscal year, the Tahoe Chamber was allocated $78,950.”
Teshara said it was a shame that supervisors would likely need to discontinue projects such as Sample the Sierra, which promoted agricultural products, wineries, and breweries in the area. “We really appreciated the chance to know about these local outputs, and without county money, it may no longer be possible to showcase those.”
R-C Editor Kurt Hildebrand contributed to this story.