Public hearing scheduled for 7 p.m. Monday, April 14 at Town Hall
PUBLISHER’S NOTE: This article is meant to inform the public of the Town’s justification and rationale for proposing an additional levy on local attractions. PVN may take a position on the proposal at a later time, but this article is simply meant to inform and does not serve as an endorsement in any way.
By Randy Arrington
LURAY, April 11 — The Town of Luray has long been known for its surrounding natural beauty. In recent years, it has become known more and more for its attractive parks, special events and outdoor amenities within Town limits. From multi-state travel ball tournaments rolling into Ralph Dean Park to larger and larger crowds descending upon Lake Arrowhead, the expectations and stress on Luray’s Recreation and Police departments continues to increase year after year.
“Right now there is talk about trying to expand the Greenway to include a cultural and historical element at Yager Spring, that’s a big project…we would have to have additional staff and additional amenities there to be able to offer that to the public,” Town Manager Bryan Chrisman said last week. “We need staff to be able to help with changes at the lake, to be able to help with improvements at the rec park, to be able to help with maintenance on our greenway, which is starting to get some age on it now in some of the sections, so all of those things… our special event listings, our music venues….it all takes staff to provide these things.”
Luray’s annual “Downtown Get Down” on the 4th of July, the Sunflower Festival on Labor Day weekend, the annual Christmas Tree lighting — and a few events held just outside Town limits — have been reporting growing numbers since the pandemic. Although they often partner with non-profits, the Town often bears much of the weight in terms of costs and staff associated with set up, take down, trash removal, traffic control, and any associated utilities.
As a way of meeting the rising costs that accompany increased services, the Town of Luray is proposing an admissions tax of 1.5 percent “upon the charge collected for admission to any event, attraction, business, exhibition, or performance within the Town, including, but not limited to, concerts, theaters, zoos, parks, sports events, and natural attractions.”
The proposal calls for the new levy to become effective on July 1, 2025.
However, all non-profit organizations, charitable events and youth sports-related activities would be exempt. The proposed levy would not apply to Little League games or high school sporting events. It would not affect church fundraisers, or annual banquets by local service and non-profit organizations.
A public hearing has been scheduled for 7 p.m. Monday, April 14 at Town Hall to receive comments from town residents.
The consideration of an admissions tax — one of few local levies allowed by the state — has been discussed by local government agencies in the past, with one of the key targets being Luray Caverns and its 5000,000-plus visitors annually. Past attempts by the county have met with opposition. However, the issue resurfaced during Luray’s budget deliberations last year.
“There are certain admissions that are mostly locals, such as the movie theater, and then we have admissions that are mostly out-of-towners like Luray Caverns,” Chrisman said. “We have a lot of groups within the community that are non-profits, that this wouldn’t apply to because the state code exempts it.”
The Town conservatively estimates initial annual revenues of about $250,000 from the implementation of a 1.5-percent admissions tax, with the lion’s share being paid by the Caverns. By comparison, a one-cent increase to the Town’s real estate tax rate currently generates less than $50,000. So, the equivalent revenue stream would require a five-cent increase to levies on homes and land.
“The money would go into the general fund, and public safety and recreation come out of the general fund,” Chrisman said. “Anytime you have situations that require additional public safety or transportation management or recreational events, whether they be musical or outdoors or whatever, both of those departments are intimately engaged in those things.”
In consumer terms, an $8 movie ticket would require a 12-cent levy under the proposed admissions tax. A $34 ticket to enter Luray Caverns would be taxed 51 cents.
“The Virginia General Assembly permits localities to implement an admissions tax, and we will continue to follow the process as it is developed by the Town of Luray,” Bill Huffman, Director of Marketing and Public Relations for Luray Caverns Corporation, stated earlier this week. “We hope that any revenue generated from this proposed tax will be thoughtfully reinvested to support tourism initiatives throughout our community, including efforts to enhance Downtown Luray.”
The admissions tax would be collected at the time an admission charge is paid and then remitted to the Town with a report on a basis, according to the Town’s public notice published on March 31.
“All of these businesses will probably increase their rate a little bit, as a pass through, I don’t see any business wanting to absorb it,” Chrisman said. “But the primary driver is a revenue stream that does not require [the Town] to increase the real estate tax or the personal property tax…”
“I started this project more than a year ago, talking to various people…the theater, Luray Caverns, and reassuring others that they would be exempt,” Chrisman continued. “Nobody likes taxes….but you know the old saying, that pigs get fed and hogs get slaughtered — as long as we’re using the money for things that benefit our local recreational or tourist-type activities, that benefit those and support those [paying the tax], they are more in support of that than increasing the real estate tax or the personal property tax.”
General funds raised through the proposed admissions tax and applied to departmental budgets could go toward staff and salaries, or simply the rising costs of equipment and supplies to do day-to-day business.
“Those departments and those activities support tourism as a whole, within Luray and the Page County area,” Luray’s town manager stated. “So if we’re able to expand those funds to help support tourism-related programs, or departments, or staff or events… I think we’re definitely supporting the people who are going to be [paying] these admissions tax payments to the locality.
“So we’re going to be helping them continue to do their job, which is get people here and when they get here, they have a good experience and they tell some friends. That’s really what it’s about.”
Copies of the ordinance implementing the admissions tax are available at the Town of Luray’s Offices at 45 East Main Street in Luray, Virginia, and may be viewed between the hours of 8 a.m. and 5 p.m. from Monday through Friday. Questions may be directed to the Town by calling (540) 743-5511 or by emailing bchrisman@townofluray.com.
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