BISMARCK, N.D. (AP) - Tourism officials say they will ask the Legislature to make permanent a 1 percent state lodging tax to help lure visitors.
The tax, enacted in 2003, it raised $2.5 million during 2003-05 budget year. It is expected to raise more than $3 million during the current two-year budget cycle.
Nikki Weissman, executive director of the North Dakota Hospitality Association, said among her members, "many of them feel it isn't a real burden. They've gotten used to it."
"I think that's pretty much a non-issue," said Terry Harzinski, executive director of the Bismarck-Mandan Convention and Visitors Bureau. "I think it's really been beneficial for our tourism department to have had additional marketing money."
The tax was not meant just for Lewis and Clark bicentennial activities, even though the state law says it is for that purpose, said Tracy Potter, chairman of the Tourism Alliance Partnership in 2003 and a current board member.
"That was a mistake by the Legislative Council," Potter said. "We never intended it to be strictly for Lewis and Clark." He said sponsoring lawmakers wanted the sunset clause attached to ensure the law passed.
State Tourism Director Sarah Otte Coleman said the tax dollars were a big help in tourism marketing and advertising. She said her budget moved from a ranking of 46th to 43rd among the states in tourism spending, with two states not reporting.
"In order for us to compete and continue to grow, we're going to have to keep that funding level," Coleman said.
The Greater Grand Forks Convention and Visitors Bureau voted to support keeping the tax, but favors more proceeds aimed at the Canadian market, said Sandy Dobmeier, the bureau's visitor services manager.
Rep. Mark Dosch, R-Bismarck, opposed the tax in 2003. Dosch said he believes the Tourism Division needs more money, and he said the state general fund can afford it. He does not want to extend the tax.
"I believe it should sunset," said Dosch, who owns Expressway Inn and Expressway Suites in Bismarck. "We told the people of North Dakota that the tax was instituted for two reasons - it was for a specific reason and for a specific period."
Keeping it means, "Either we lied to the people then or we're lying now. That being said, we need to fund tourism at a higher level," he said.
Posted in Local on Monday, September 4, 2006 7:00 pm Updated: 9:58 am.
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