Board: World Cup Boosted Options Tax Revenue

Vermont Standard

By Curt Peterson

Standard Correspondent

Killington – On Town Meeting Day resident voters will approve or reject a budget that includes the $100,000 commitment to support a possible redux of the 2016 FIS Women’s World Cup Ski Races as a line item. The budget would increase the municipal tax rate by $.289, or about $60 per year for a home assessed for $200,000.

The 2016 FIS Women’s World Cup Ski Races in November were an enormous success by anyone’s measure, but whether or not to commit $100,000 of taxpayer funds to attract the event back to Killington in 2017 is a question on which some disagree. Some voters seem to think it’s a great investment – the others, not so much.

The investment advocates point out that the funds are coming from taxes paid by the businesses that have benefitted and would benefit again from staging the event in the resort town. The Options Tax, as it’s called, is applied to rooms and meals, as well as a 1 percent additional tax on retail sales, and was originally intended to fund economic development.

Those opposed point to Killington Resort as the biggest beneficiary of the event, and feel they should fund the event from profits they will reap. They’d like to see the funds used to lower taxes or to fund other projects, such as renovations at the Library.

For its part, the Resort claims the races produced a net cost of $1.2 million, and that without support from the community and others they will not be able to afford to stage the event again. They asked the town for the $100,000 commitment.

During the brief Feb. 7 Select Board meeting, chair Patty McGrath went over the fourth quarter Options Tax report that was very recently received.

“I want to point out for the voters,” she said, “that in 2012 the fourth quarter Options Tax receipts were $159,000. In 2013 they were $161,000. In 2014 they were $200,000, and that was a phenomenal winter. 2015 wasn’t that great, but the receipts for the quarter were $180,000. In 2016, the Options Tax revenue was $240,000 for the fourth quarter, and that huge increase is primarily due to the World Cup event.”

Selectman Chris Bianchi pointed out that November, the month in which the Cup races were staged, is generally not a “banner month” for tourism in the town.

McGrath, who owns the Inn at Long Trail, said the races were a significant boost to her business right through the Christmas holidays.

“They came and saw how good the snowmaking was and enjoyed the town, and the stayed or came back to do it again and again,” she said. “All this makes the point that the $100,000 in the budget for the event is a good idea.”

If voters approve the budget, they won’t necessarily be spending the money, nor are they voting to give the money to the Resort. The commitment the Select Board is asking voters to make is to pay up to $100,000 of the actual incurred expenses only if the event is held in Killington next November. If the FIS races go somewhere else or weather precludes racing at Killington, the funds will go back into surplus in the town budget.