OKC Council Considers Raising Hotel Tax to Boost Tourism; Local Vote Set for August

The Oklahoma City Council is considering a proposal to increase the hotel tax from 5.50% to 9.25%. This tax applies to overnight hotel stays and home-sharing rentals in Oklahoma City. A public hearing for the proposal is scheduled for May 14, and a vote will take place on May 21. If approved, a citywide election will be held on August 27.

In 2004, Oklahoma City residents approved a hotel tax increase with an 89.4% approval rate. The proposed 3.75% increase could generate an extra $11.6 million in revenue. The revenue would be divided as follows: 75% for Tourism Promotion, 13.3% for Event Sponsorships, 6.7% for OKC Fairgrounds improvements, and 5% for OKC Convention Center improvements.

The current 5.5% hotel tax is divided into 55% for OKC Fairgrounds improvements, 36% for Tourism Promotion, and 9% for Event Sponsorships. The proposed 9.25% hotel tax would be added to the existing 4.5% state sales tax and the 4.125% City sales tax, making a total of 17.875%. If approved, the new rate will start on October 1, 2024.

Zac Craig, Visit Oklahoma City President, stressed the need for more tourism. He said the city needs to increase its marketing efforts to compete with larger cities. He also noted that Oklahoma City's hotel tax is lower than that of similar cities like Tulsa and Wichita.

The proposed tax increase would fund more advertising and support for large events and festivals. Some of the funds would also be used to improve the OKC Fairgrounds and OKC Convention Center. These venues host national and international events that attract millions of visitors each year. City Manager Craig Freeman emphasized the importance of the hotel tax in attracting these events and supporting visitor services. He noted that the tax hasn't been adjusted in 20 years and funding for tourism promotion hasn't increased in 52 years.

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