At its October 27 council meeting, council voted to modify the financial agreement between the Town and the Huntsville Municipal Accommodation Tax Association (HMATA).
Currently, the municipality’s program administration costs are deducted from the proceeds of the accommodation tax. Then the remainder is split between HMATA and the Town at a rate of 62 per cent for HMATA and 38 per cent for the Town.
Last summer, municipal staff were directed to begin negotiations with HMATA on the renewal of a two-year contract at a split closer to 50/50.
Jeff Suddaby, HMATA Chair, was also before council. He said one day of summer revenue in the hospitality sector equals one week of revenue in the winter. He said HMATA’s goal is to increase visitors during the shoulder season, which will also generate more revenue for the Town. To do that, more attractions and marketing events such as the Forest Light Trail, coming to Sandhill Nursery this November, the downtown ice skating rink, and the 55+ Winter Games.
Suddaby said the Association was hoping for a 65/35 split (65% for HMATA and 35% for the Town) in order to create a vibrant Huntsville tourism sector, beat the competition, and create year-round hospitality jobs. While staff were recommending a 40/60 split (40% for the Town and 60% for HMATA), which council supported with the exception of Councilor Scott Morrison, who sits on the board of HMATA as a council representative, and said the organization does great things for the community, and did not want to see its funding decrease.
Last summer, Huntsville council also passed a policy with respect to how the Town will strategically use its MAT funds, which essentially includes infrastructure to support a growing tourism sector as well as health care spending, while HMATA uses its portion to promote tourism.
Don’t miss out on Doppler!
Sign up here to receive our email digest with links to our most recent stories.
Local news in your inbox so you don’t miss anything!
Click here to support local news
For local residents sometimes utilizing local hotel/motel airbnb facilities,, should there be an exception to the HMAT?