A tale of two tourism taxes: the BCTT and TCEDT [Part 1]

For any place that relies on tourism, like Branson, two things are always necessary: the physical systems that handle huge crowds (like roads and sewer lines) and the constant advertising needed to bring those crowds in the first place. In Branson, two different “Tourism” taxes help pay for this: the Branson City Tourism Tax (BCTT) and the Tourism Community Enhancement District Tax (TCEDT).

It’s easy to get them mixed up, but if you look closely, you realize they are designed for very different jobs. The Branson City Tourism Tax, while having a marketing element, is administered by the City of Branson, applies only within the city limits, and focuses on infrastructure, roads, sewers, water, etc. The Tourism Community Enhancement District Tax has no infrastructure element, is administered by an independent board, applies to the City of Branson and areas within the District, and focuses on marketing and public relations within the District.

The BCTT is managed directly by the city government, and it is a fundamental tax needed to keep Branson running when its population suddenly swells by tens of thousands of visitors. Branson is home to only about 11,000 people, give or take a couple of thousand. Still, its infrastructure must be strong enough to handle a peak population of over 100,000 on some days. Whether it’s a resident or a visitor, when a toilet is flushed, they expect the “dump” to go down.

To the Ole Seagull, this tax consists of two separate parts. What he calls the “Lodging and Fun Tax and the “Food and Drink Tax.” The Lodging and Fun Tax is a four percent (4%) tax imposed on the price paid or charged for rooms or accommodations paid by transient guests (staying 30 days or less) of hotels, motels, campgrounds, etc., within the city. It also applies to the price paid or charged for any admission ticket to or participation in any private tourist attraction or show in the town, such as amusement parks, carnivals, circuses, horse shows, rodeos, music shows and live theaters. The Food and Drink Tax is a 0.5% tax on the purchase price paid or charged for food and drinks sold on the premises of restaurant establishments in the city, or for drinks sold for consumption on the premises by licensed establishments.

The true importance of the BCTT lies in where the money goes. All collected taxes are deposited into a special trust fund called the Tourism Tax Trust Fund. By law, seventy-five percent (75%) of everything collected must be set aside for the Infrastructure Account. This money is used solely for building and maintaining essential physical systems: streets, roads, highways, sidewalks, waterworks and wastewater systems, including distribution and collection systems. This is often used to pay off the bonds that fund these large improvement projects. The remaining twenty-five percent (25%) goes into a Tourism Promotion Account for the tourism marketing of Branson.

As a group, tourists pay the enormous majority of the 4% Lodging and Fun Tax and the .5% Food and Drink Tax. On an individual basis, however, while the individual tourist still pays the majority of the 4% Lodging and Fun Tax, that is not the case with the .5% Food and Drink Tax. That tax is paid every time someone, tourist, resident, or local, buys a cup of coffee, hamburger, pizza, etc., in Branson. Individual tourists only pay this tax while they are in Branson. Branson residents and locals pay this tax daily, day in and day out, whenever they make such purchases within the city limits.

Part 2 will be published in the December 12 edition of this paper.