Proposed Kent County hotel tax increase produces debate

GRAND RAPIDS, Mich. (WOOD) — Voters will decide in the Aug. 6 election if Kent County’s hotel tax should be increased to support major developments, including the new amphitheater in Grand Rapids.

There is some opposition to the plan, with an organized group paying for a billboard on I-196 near Grand Rapids.

The group behind it has brought up concerns about parking and increasing taxes to support big projects. News 8 made multiple attempts to reach out to the group and had not heard back as of close of business Tuesday.

Others have voiced concerns that the additional tax will be a burden on the homeless who often use hotel rooms.

The Grand Rapids Area Chamber of Commerce supports the proposal and said those concerns are being addressed, according to Vice President of Government Affairs Joshua Lunger.

“By and large, almost 90% of the funding doesn’t come from our residents. It comes from folks that are visiting from outside the Grand Rapids area,” Lunger said. “I know that some of the things highlighted by the opposition were parking concerns which I think have been addressed even almost within the last week. You’ve seen that the city of Grand Rapids has partnered on a major parking installation around one of the sites.”

The money from the tax increase will provide funding to support projects like the Acrisure Amphitheater , which is already under construction and expected to open in the summer of 2026, and a proposed soccer stadium in Grand Rapids. The venues would be publicly owned with oversight from elected officials.

“No one’s property taxes are going up because of this question. This is an excise tax on hotel and motel stays. So if you’re staying in a Kent County hotel or motel, the current excise is 5%, it’s going to 8%. In 2023, that averaged about $3.72 a night,” Lunger said.

The chamber said the tax only applies to stays less than 30 days. It said supporters are working on an initiative to help those who are homeless.

“We’re supporting an effort by the Grand Rapids Coalition to End Homelessness called 100 in 100 , and there’s a ton of working be done behind the scenes,” Lunger said.

The chamber says the projects will draw people to the area and grow the local economy.

“The impact of these investments go so far beyond just the pure physical footprint of it. What we’re talking about is the next generation of economic development,” Lunger said.

For the latest news, weather, sports, and streaming video, head to WOODTV.com.