WHAT PART ABOUT VENUE TAX DON'T THEY UNDERSTAND?

Special to El Rrun-Rrun

The knee-jerk mantra of the anti-arena crowd is that it will increase property taxes for Cameron County as the sign that just appeared recently blatantly states. But this is not true. It will be funded by the existing venue tax on rental cars and hotel tax already in place in Cameron County. 

In fact, that is what was used to fund the construction of the Cameron County Amphitheater and Event Center on South Padre Island, which opened two years ago, and the South Texas Ecotourism Center just completed in Laguna Vista. 

Now Cameron County Eddie Treviño is asking voters to “do it again” for a facility he said will benefit the entire Rio Grande Valley while imposing no additional tax burden on county residents, since the revenue already exists. None of the venue tax revenue would be used for the Madeira development itself, he said.Cameron County Judge Eddie Treviño Jr. addressed several of the community’s concerns. 

“This proposition is basically a yay or nay vote authorizing the use of the venue tax which consists of the hotel-motel and car rental taxes. Use that revenue stream to pay for a portion of the project,” said Treviño. “There is no plan at all to utilize any type of general fund or property tax revenues for this project,” he said.

He said he is hoping the developer and venue taxes will pay 15 to 30 percent of the project but added that additional funds could be used through public-private partnerships and by additional public funding through potential state and federal grants.

Per the ballot proposition language, 2 percent of the county’s current hotel occupancy tax and 5 percent of its current vehicle rental tax would be authorized to pay for this project. Admissions to the arena would also come with a 10 percent tax. If approved, the total hotel occupancy tax rate in Cameron County would be 17 percent.

Here's Public Funding 101: 

Property taxes (ad valorem taxes) are used for things like funding public schools, libraries, city streets (potholes), county roads (potholes), public safety and city and county personnel payroll, infrastructure improvements, etc...

In other words, these property taxes are severely restricted in their use. 

Venue taxes such as the funding proposed for the center/arena, are also restricted and deal strictly with tourism and are generated by the tax on car rental and hotel occupancy taxes paid by visitors to the area, not county property taxpayers. These include stadiums, hotels, arenas, mutli-use venues like the proposed arena/center. 

These are also strictly restricted funds and can only be used for that purpose – to encourage tourism and attract outside visitors.

Early voting ends today. The election will be May 7.