Franklin County lawmakers weigh bed tax law change
Public hearing scheduled for Thursday
Franklin County is considering making changes to its occupancy tax law, potentially shifting the duty of approving and facilitating the strategic marketing plan from the Tourism Advisory Committee to the tourism promotion agent, who would also be a liaison between the TAC and the legislature.
The occupancy tax law, sometimes colloquially referred to as the “bed tax,” places a 5% tax on all rented rooms at hotels, motels, bed-and-breakfasts and vacation rentals, with that revenue to be spent on tourism promotion. The strategic marketing plan guides the spending of this money, which organizations, governments, hotels and event organizers apply for.
The proposed change is in a section of the law on how revenues are used. It is a small change, in terms of the language.
Currently, the law says the TAC “shall develop, approve and facilitate the implementation of the strategic marketing plan.”
The new proposed language would change that to say that TAC “shall develop and propose a strategic marketing plan.”
A public hearing on this potential change has been scheduled for 10:30 a.m. on Thursday in Malone before a vote is scheduled on the changes later that day. Questions and comments can be submitted before June 6 to Legislature Clerk Penny Premo at 518-481-1640 or penny.premo@franklincountyny.gov.
Members of the Saranac Lake-based North Country Sports Council, who have lodged complaints about the TAC and the occupancy tax distribution process in the past, feel this change would be taking out language that allowed TAC to approve or disapprove things before they get to the legislature — a change they view as “positive.” But county Manager Donna Kissane said that it’s always been the case that TAC makes a recommendation and the board makes the final decision.
Earlier this year, the county passed on a $135,000 proposal from the NCSC to make the Hotel Saranac the official home of the Jamaican bobsled team during their season. The TAC declined to back this proposal, leading the legislature to not put it up for a vote, with board leaders saying they listen to what the TAC wants to do.
Kissane said TAC’s recommendation is highly regarded by the board because of the expertise of its volunteer members.
But county officials were not all clear on the TAC’s vote or reasons for its decision on the NCSC proposal. The TAC itself did not divulge its reasons for its vote, declined to share how each member voted and declined to share whether the vote was unanimous or split. It also did not publicly share the names of all of its members.
“It should have never been like that,” NCSC Chair Neil Fortier said.
He’s been advocating for the tourism promotional agent to be the one to make decisions. Having done sports consulting work all around the country, he said Franklin County’s process is abnormal from what he’s seen elsewhere, and in a way he feels it’s vague and opaque.
“Anything that continues to define it and make it transparent and clear what the process is and what the expectations are, I think are good,” NCSC Executive Director Matt Dougherty said of the proposed amendment.
But he said he still has questions about the new proposed system and doesn’t see direct answers in the legislation.
As someone who submits proposals for the spending of this money, he has a lot of questions about the process. He wants more information on what makes a successful proposal, why one would be denied, and who makes that decision. Dougherty said he plans to be at the meeting on Thursday to ask for clarification of the amendment and the occupancy tax law process as a whole.
Franklin County Board Chair Ed Lockwood said Phil Hans, who directs the county’s Office of Economic Development and Tourism, is the county’s tourism promotional agent and would work as a liaison between TAC and the legislature. He will assist TAC in developing the strategic marketing plan and bring that plan to the legislators on the board for approval. Then, he’ll bring what the board says to execute on back to TAC.
Kissane said Hans will meet with TAC on a regular basis if the plan needs to be updated.
“It’s just going to make things smoother,” Lockwood said.
He said Hans has sort of been doing some of this since the county created his position after cancelling its tourism promotion contract with Adirondack Frontier in 2022 to move that work in-house. He said this change would make Hans more “hands on” in the whole process.
“Every year we’re trying to figure out more and more what (Hans’) role is,” Lockwood said. “He was already doing a lot of it. Now, it’s just that we’re putting it in a law.”
Dougherty feels the bobsled contract issue likely contributed to this change, though no county officials said that is the sole reason.
“It’s new for the legislature to have all this,” Dougherty said, adding that the legislature is grasping their responsibility in the years following the decision to move the tourism promotion contract in-house, as new things come up.
He also said the application process is cloudy for the people submitting proposals for funding.
Currently, if a submission is denied, they don’t hear back about why, he said. It’s hard to figure out themselves. He wonders what the parameters for approval are, or if there is a rubric involved. He said communication back to applicants is important.
Dougherty thinks the county sees that, and that’s why they’re looking at changing the rules.
If approved on Thursday, this amendment to the law would take effect on Aug. 13 and last until Aug. 13, 2027.
TAC members currently are Wayne Feinberg, Chris LaBarge, Bruce Monette, Jr., Jay Perras, Krystle Fletcher, Scott Van Laer, Stephanie Ratcliffe and Tiffany Richards.
The public hearing on Thursday will be held on the fourth floor of the county court house in Malone. The meeting will not be livestreamed, but can be attended in person at the county’s legislative chambers.