A local newspaper story on Christiansburg Town Council capping money passed to the county chamber's Tourism Development Council (TDC) contained errors.
It reported "In 2004, Christiansburg, Blacksburg and Montgomery County agreed to increase their transient occupancy taxes." Factually incorrect. The sales pitch -- contributions without real costs, increasing tax revenues -- was made in 2004. The additional tax was approved and made effective July 1, 2005. Initial payments from these collected taxes were made that December. Blacksburg only increased its occupancy tax 1%, as requested. It took three years to finalize related contracts. The county needed to obtain permission from the General Assembly, which mandates extra lodging taxes be used only for tourism development. Blacksburg and the county have fully dedicated these additional tax revenues to the regional initiative.
It reported "The money serves three purposes: 55 percent is for marketing the town, 25 percent is for research and development and the remaining 20 percent is for administrative costs." Factually incorrect. The 55% earmarked for marketing is to promote the region, not Christiansburg. This initiative was always meant to be regional, not to benefit one funding source over another or based in proportion to contributions. Still, Christiansburg events have received the greatest portion of TDC grant awards thus far.
Council members indicated this is "not so much" because a regional partnership isn't a good thing, rather that the town wants (more) money.