The implantation of a 2% local tourism tax remains under discussion, with city officials indicating potential revenue could initially be used to upgrade baseball fields at Hugh Ellard Park to create state-of-the-art facilities for travel and recreational baseball. Over time, other parks will be slated for improvement funding through the new tax revenue.
Kosciusko-Attala Partnership Director Darren Milner said he had discussions with the aldermen a year or two ago about adopting the tax, and he believes it would be a positive way for the city to attract more visitors and generate additional revenue.
“Our goal as a chamber of commerce is to try to reach out and figure out how we can help the community generate as much interest as possible, and one of those that we look at here is certainly tournament baseball and softball,” said Milner. “That's an opportunity for us to bring in literally thousands of people a month in our community. Of course, what that equates to is they buy gas here, they shop here, they eat here. So, it all starts to culminate.”
To implement the tax, the aldermen must vote unanimously to do so and then submit the proposal to the state legislature. If approved by the state, the matter would then be put before Kosciusko’s voters for final approval.
Although Hugh Ellard Park would be an early focus, Mayor Tim Kyle said the city is looking at upgrading other parks, as well.
“I'm working on some stuff right now where some of this money we can use maybe for some specific projects at other parks too,” said Kyle. “But our main emphasis is on redoing those baseball fields because that's where your drawing is, and you have got to spend money where it is going to make you money.”
He said the funding could potentially give Kosciusko youth nicer facilities to enjoy and be a big draw for visitors looking to compete in travel ball tournaments.
“When you're bringing in all these other people in your town, spending money at Walmart, restaurants, or motels. It's just a win for everybody,” said Kyle. “Sales tax, that is your firefighters, that’s your police, that’s your paving, that's everything that this town does. And the thing that's so great about it is you would have outsiders helping pay for it.”
Milner said he has talked with several other municipalities — such as Winona and Carthage — that have implemented a tourism tax to fund projects. None of them have had any issues, Milner said he was told. He added that a tourism tax would also serve as an economic driver locally.
“I didn’t talk to one community that had any problems or any issues,” said Milner. “If you look at Carthage, they utilized their funding for their new park. If you look at Winona, they have done a lot with their ballfield up there. So, it's very important for us. Again, 2%, it's just two pennies.”
Other communities with a tourism tax include Lexington, Yazoo City, North Carrollton, and Vaiden, among others.
In an earlier report submitted to city officials, the KAP executive director said youth sports is a $19.2 billion market in the United States. For every tournament held in Kosciusko, there could be as many as 50 teams with 13 players each. Since all players would be under 18, they would be required to have at least one parent or guardian traveling with them, though Milner said most bring their whole family. If every player traveled with just one adult, 700 people would come to every tournament, excluding coaches and assistant coaches.
According to Milner’s research, a family of four attending a two-day tournament likely spend $50 on gas, $125 on meals, $175 on hotel rooms. With an average of 13 players per team, each partiipating team would spend about $4,550 in local businesses. A tourney with 50 participating teams could mean over $227,500 spent locally in a weekend.
Milner noted the city would receive 100% of the taxes collected from a tourism tax, compared to a “bed tax” where the city only recoups a portion. Funded by out-of-towners, he believes the city could reap nearly $300,000 per year, a substantial increase from monies accrued from hotel fees.
“When you're looking at a bed tax, we're only looking at $25-$30,000 annually,” Milner said. “When you look at a 2% tax as a whole, you're looking at probably close to $300,000 a year annually, which goes a long way to rebuild and do some things that we need.”
Milner said food purchases — like those from restaurants — are almost equally split between locals and visitors.
“Only about half of that is coming from the community, and the rest is tourism, which is great. So, it is just an opportunity to really help us get funding that is direly needed,” said Milner. “Where it might take us years for the city to fund something, you could do it literally in a year.”
He said most people visiting municipalities with a tourism tax usually do not even realize they are being taxed, and it has been inspiring to see what other communities have done with their tourism dollars.
“When you go to places like Carthage, most people don't look at their receipts. Look at your receipt, you're paying that two percent,” he said. “But getting 100% of that tax back is wonderful for the community. And with all the communities that have been able to implement it, it's amazing what they've been able to do with that funding.”
Milner said he hopes the aldermen will unite and endorse the proposal for what he believes will be the betterment of the community as a whole.
“My hope is that they can come together on the idea that it is the economic driver, and we have got to look at the community as a whole — not just one ward versus another ward versus another ward,” said Milner. “This is about Kosciusko and figuring out what is the economic driver. Why can’t we have this or why can’t we have that? When you start looking, there's a reason a lot of these other communities are generating this type of funding. We need to be generating that funding here and we can be.”
