Lack of Federal Money Stalls Davis Riverfront Park Improvements
Plus, Airbnb's Confusing Tax Payment System, and Readers React to Data Center Plan
Davis Mayor Al Tomson’s plans to expand and transform Riverfront Park are on hold while he restarts the process of seeking federal funding for the project.
Tomson had been working with U.S. Senator Joe Manchin on a $3.9 million federal budget earmark to fund the project, which includes a band clamshell for outdoor music, playground equipment, parking, and other features. However, Manchin has since retired from the Senate, and the budget bill recently passed by Congress included no funding for the project.
Tomson said he will restart efforts to get federal money for the park by working with West Virginia’s two current U.S. senators, Republicans Shelley Moore Capito and the newly elected Jim Justice.
Tomson said that while his overall plans for the park are on hold, he will pursue smaller, piecemeal improvements to the park using revenue from the hotel/motel tax and other funding sources.
“We’ll try to cobble a few things together,” he said.
The town recently completed a section of a walking trail in the park that eventually will connect with a broader network of trails.
More News
Airbnb’s Confusing Tax Payment System Angers Local Officials
By Mat Cloak, contributing writer
Airbnb has created a bookkeeping nightmare for local officials who must process hotel tax revenue, requiring hours of staff time to untangle and delaying much-needed funds for local services, officials say. One of the delayed sums totaled $124,569.
“We’re talking real money, here,” Davis Mayor Al Tomson said.
The issue occurs when Airbnb distributes the 6 percent hotel occupancy tax that it collects for local governments under West Virginia state law. Half of the money goes to the Tucker County Convention and Visitors Bureau.
The other half is supposed to be distributed to the appropriate municipality. However, Airbnb distributes the money based on zip codes, which don’t align with municipal boundaries. The town of Davis and Canaan Valley share the 26260 zip code, so Airbnb sends all the tax money collected from that zip code to Davis. Taxes collected from Airbnb lodging in Canaan Valley should go to the county, not Davis.
For example, tax revenue totaling $124,569 that was collected by Airbnb in 2023 and owed to Tucker County was delayed for months while local officials figured out how much funding was improperly sent to the town of Davis, said County Administrator Shelia DeVilder.
County Commission President Mike Rosenau said the problem results in delays of money for EMS, local fire departments, and other services.
To redistribute the money appropriately, local officials comb through the address and tax amount for each Airbnb visit to figure out if the stay was in Davis or Canaan Valley. The records Airbnb provides are a confusing mess, local officials say.
Airbnb responds
A spokesperson for Airbnb said the company follows the law and cooperates with local officials. “We take our tax obligations seriously, make payments on time, and can work with state and local officials to ensure that the appropriate taxes are collected and distributed accurately,” the spokesperson said.
Airbnb also provided a statement with additional information on the complexity of meeting West Virginia tax obligations. Click the button below for the full text of the statement.
Local officials tell a different story, saying Airbnb has been unresponsive to requests for help.
DeVilder added that the county has already reached out to the state attorney general for help in pressuring Airbnb to provide clearer records, “After we pulled in the Attorney General, it took us probably six to nine months just to get somebody from Airbnb to actually communicate with us,” DeVilder said.
Tomson said he is exploring a potential lawsuit against Airbnb to force the company to provide clearer records. However, Tomson also said he talked to Airbnb officials recently and they appear to be making progress on resolving the problems.
Spreadsheet nightmare
Airbnb inconsistently provides the address and tax amount for each stay, local officials said. Tomson reported that Airbnb often just sends them a check without any background information at all. When they do provide the data, it is often mixed with lines and lines of unnecessary data. In one data dump, DeVilder said she worked through approximately 56,000 spreadsheet entries.
“Airbnb has the ability to do what’s necessary, which is to just produce the details so we have the address and tax amount for that stay,” Tomson said. “It’s just bad business processes on the part of Airbnb.”
As for a solution, Tomson and Rosenau believe it’s up to Airbnb or state lawmakers. “We’ve tried every avenue. We’ve tried everything we can think of to solve this issue,” Rosenau said.
“It’s just kind of been the runaround from Airbnb because it doesn’t really affect them,” DeVilder said.
Local officials said VRBO is correctly distributing the tax revenue it collects.
(Dan Parks contributed to this story.)
More about the local impact of Airbnb:
Editor’s Note: Data Center Controversy and the Response From Readers
The reader response to our recent coverage of a proposed new data center near Davis and Thomas has been enormous, drawing 5,000 to 8,000 views per edition.
The proposed facility came as a surprise to a lot of people, including local elected officials.
Many readers thanked Country Roads News for digging into the issue and providing information. I’m told that our stories made the rounds in Charleston among lawmakers debating the issue, among others.
The stories also produced several new paid subscriptions, even though those stories weren’t behind a paywall. Those folks were sending a message; they value high-quality local journalism and will pay to help support it, even when they can read it for free.
Comments from Country Roads News readers about our data center coverage:
“You are hitting it out of the park with your series on this issue. Thank you.”
“Magnificent reporting and fast turnaround.”
“Great reporting. This is how stories should be told in West Virginia.”
“Keep digging Dan.”
My colleague Mat Cloak and I will continue to follow data center developments closely. Those stories will always be free for everyone to read. The data center proposal is too important to limit the number of people with access to this information.
If you value this kind of journalism about your community, please consider joining those who support it financially. If you can’t afford a subscription, please keep reading. You’re always welcome here.
Dan