One year later
Actually, its been more than a year since the hotel/motel tax of 1.5 percent went into effect on Dec. 1, 2015. Caddo and Bossier parish voters approved the tax on the second vote after it had failed in 2014. The tax was passed to benefit the Arklatex Regional Air Service Alliance (RASA), the Shreveport Bossier Sports Commission (SBSC) and the Independence Bowl Foundation.
Bossier City Mayor Lo Walker touted the tax as being “absolutely no tax, no sales tax, or property tax on local citizens.” Shreveport Mayor Ollie Tyler touted the measure as “two cities unified behind a proposition that we know will strengthen the economy of Northwest Louisiana.” It was estimated that the tax would raise about $1.7 million each year; the revenues were actually less for its first year. The total amount collected during 2016 for each organization was $545,879.81; after deduction of a 1 percent collection fee, each agency received $540,421.09.
RASA’s top priority is to have a direct flights to Washington, D.C., to support the missions at Barksdale Air Force Base, Global Strike Command, Cyber Innovation Center and Fort Polk. RASA’s short-term goals include additional airline access to major hubs to support business travel such as Charlotte, Chicago and Salt Lake City. RASA has reached out to Southwest Airlines, although Southwest is reportedly not adding any new services in the country this year. (RASA did not provide any support to GLO Airlines for their daily flights to Baton Rouge and New Orleans.)
As can be expected, RASA does not disclose its current projects or negotiations with airlines or carriers due to the confidential nature and the competitive environment for additional air services. RASA has no employees, and its ongoing expenses are funded by various Chamber groups and private donors. The hotel/motel tax revenues have been banked to subsidize any additional air service negotiated by RASA.
The Shreveport-Bossier Sports Commission (SBSC) is a division of the Shreveport-Bossier Convention and Tourist Bureau; its goal is to attract and market sporting activities and events to Caddo and Bossier parishes. Its members are appointed by the City of Bossier, the City of Shreveport, the Bossier Police Jury and the Caddo Commission. In addition to the hotel/motel tax, the Sports Commission receives funding from trade and in-kind partnerships, ticket revenues, public cooperative agreements and private sponsorships.
As can be expected, the SBSC provides assistance in many ways for sporting events: bid development, event management, welcome/ registration, promotion and advertisement, and the like. Last year the SBSC supported over 50 local events that ranged the full gamut of sports; these included rugby, wrestling, archery, bowling, basketball, soccer, swimming, football, tae kwon do and boxing. Additionally, SBSC assisted the hot air balloon rally, Bassmaster, rodeos and the NBA exhibition game among other events. The SBSC contributed $30,000 to the Independence Bowl and received over 100 tickets for its staff, board members and sponsors.
And, of course, the Independence Bowl Foundation received its hotel/ motel tax funds. If the CEO of the former sponsor Camping World is to be believed, the additional funds did not improve the Bowl experience. The announced Bowl attendance of a little more than 29,000 is a testament to the fading appeal of the Bowl, both to the out-of-town teams as well as the Northwest Louisiana sports fans. The hotel/motel tax revenues supplemented the Bowl sponsorship fees and other revenues of the Independence Bowl Foundation, which sponsors the bowl game. The Foundation is not subject to the Louisiana Public Records Act and, thus, in-depth information about bowl revenues and expenses is not available.
The I-Bowl is tied into the SEC and ACC football conferences, and, thus, its team selection is limited. The increased team payouts and the surplus of bowl games (now 41) have provided additional economic challenges for a bowl game. The hotel/motel tax was advertised to be the savior of the Bowl, but that promise seemingly may not pan out. The Bowl has (again) lost its title sponsor, and the future of the Independence Bowl is definitely uncertain at best.
So, has the hotel/motel tax lived up to its hype? The reality is that the tax is here – at least for another 11 years. And like it or not, the organizations receiving the money are not subject to public control or real accountability to the citizens.
John E. Settle Jr. is an attorney who has practiced in Shreveport- Bossier since 1977. His columns have appeared in local publications for more than 15 years. He can be reached at 742-5513 or e-mail to: [email protected].