Summary of the Nine Uses for the Local Hotel Occupancy Tax

[council3_rubal]

Summary of the Nine Uses for the Local Hotel Occupancy Tax

In summary, local hotel occupancy tax revenues only may be spent to establish or enhance a convention center or visitor information center, cover the administrative expenses for registering convention delegates, pay for tourism-related advertising and promotions, fund arts programs or facilities that will directly promote tourism and hotel and convention activity, fund historic restoration or preservation projects that will enhance tourism and hotel and convention activity, in certain counties and cities noted above fund certain costs for holding sporting events and making upgrades to sporting facilities that substantially increase local hotel activity, certain transportation costs for taking tourists from hotels to various locations, and pay for signage directing tourists to sights and attractions frequently visited by hotel guests.

Note above approved uses. In addition, might suggest considering.

Aviation Art and Cultural Center

Information Center with History RAFB

Street Art & Signage

Reference link

https://services.austintexas.gov/edims/document.cfm?id=279577
Local Hotel Occupancy Tax Overview

 

[council4_vaughan]

According to the budget, numbered page 2, there will be about $362,000 left in the hotel/motel tax fund at the end of 25-26. That is money we could put to use now if we can find a good use for it. Perhaps we could budget $100,000 in hotel/motel expenditures in this budget and direct staff to bring us some good options. I think there should be a conversation with the hotels on what they think helps put heads in their beds as well. If it is too late to put in the budget, we could have that as an agenda item for early in 25-26 and pass a budget amendment to authorize the spending.

If we really can't find a good use for it, we can lower the rate. Right now we charge 7% for our occupancy tax. Selma, Schertz and Live Oak also all charge 7%. Dropping ours could give our hotels a slight competitive advantage.