OKLAHOMA CITY (OBV) – Oklahoma City’s portion of the hotel tax will see a nearly four percent increase thanks to a citywide vote in favor of the increase.
Voters went to the polls on Tuesday to vote on primary runoff elections. The hotel tax increase was also on the ballot.
A majority of voters supported raising Oklahoma City’s hotel tax from 5.50 percent to 9.25 percent. The new rate will go into effect on Oct. 1, with revenue from the increase supporting the city’s tourism industry.
“All OKC does is win,” Oklahoma City Mayor David Holt said. “This is a big victory for our city. By giving us the resources to compete – without taxing our residents – this solidifies our status as a tourist destination. Those visitors fuel our economy and help fund our core city services. This result also illustrates why I call us the most mission-focused city in America. Our voters’ commitment to progress remains strong. We continue to do what it takes to remain a top 20 city.”
The tax is charged to individuals who spend the night in a hotel or rent a home-sharing property in OKC.
Funds generated by the tax increase will be invested in advertising and marketing efforts to attract more visitors, and will also support large events and festivals.
Some of the funds will also be used to improve the OKC Fairgrounds and OKC Convention Center, both of which are anchor venues for national and international equine competitions, sporting events and conventions that bring in millions of visitors annually.
“Tourism employs 1 in 20 locals and is the third largest industry in the state, with Oklahoma City leading the way in visitation and economic impact,” City Manager Craig Freeman said. “Thanks to investments we’ve made through MAPS, tourism is now a significant and growing aspect of our economy.”
The 3.75 percent increase is projected to generate an additional $11.6 million. The added revenue will be allocated as follows:
- 75 percent tourism promotion, direct funding to promote and/or foster the convention and/or tourism (visitor) development of Oklahoma City;
- 13.3 percent event sponsorships;
- 6.7 percent OKC Fairgrounds for improvements, not including operational costs; and,
- 5 percent OKC Convention Center for improvements, not including operational costs.
The city’s current 5.5 percent hotel tax is distributed as follows:
- 55 percent OKC Fairgrounds for improvements, not including operational costs;
- 36 percent tourism promotion, direct funding to promote and/or foster the convention and/or tourism (visitor) development of Oklahoma City; and,
- 9 percent event sponsorships.
The 9.25 percent hotel tax is in addition to the 4.5 percent state sales tax and the 4.125 percent city sales tax, which combined amounts to 17.875 percent.
The tax rate, including hotel tax, for some other major Midwest and Southwest U.S. cities are as follows:
- Memphis 19.75 percent
- San Antonio 19 percent
- Kansas City 18.35 percent
- Austin 17 percent
- Tulsa 16.52 percent
- Wichita 16.25 percent
“On behalf of Visit Oklahoma City and the nearly 35,000 locals that work in hospitality, I want to thank the citizens of OKC for voting in support of tourism and the vital role it plays in our community and economy,” Visit Oklahoma City President Zac Craig said. “We’ve built a dynamic destination, and this increased funding allows us to attract visitors that are the lifeblood of our districts, small businesses, hotels and attractions.”
