How the Kent County hotel tax increase will fund projects

GRAND RAPIDS, Mich. (WOOD) — The newly approved hotel tax increase in Kent County will generate millions of dollars a year to support projects like the Acrisure Amphitheater.

The funding will also be used for a soccer stadium and could be used for an aquarium.

Kent County Administrator Al Vanderberg says the funding will make a big impact on growing the area as a destination by creating new attractions.

“The increased funds from the additional 3% lodging excise tax will bring in about $8 million per year,” Vanderberg said. “Those funds are needed to pay for the amphitheater and the soccer stadium. Really, that budget will be maxed out for about the first four years of collection of the new tax based on our current projection.”

The projects are being funded through a public-private partnership but will be publicly owned and controlled.

An aquarium being discussed as a potential long-term project could also use a portion of the funds.

“Also, we have the repayment of the bonds on DeVos Place that will happen in 2031 that will also free up a fair amount of resources to pursue other major projects,” Vanderberg said.

One of the organizations that will benefit from the increase is Experience GR, the convention and visitor’s bureau for the area.

“They’ve agreed to take 17% of the new total, and so that will bring an additional $1.3 million into their coffers,” Vanderberg said.

Vanderberg says the hotel tax increase will help ensure the longevity of well-known events that receive support from the fund.

“A portion of the funds does go to help the Festival of the Arts and also ArtPrize. And so there are some ancillary uses of the funds that are fairly small but invested in events that bring a lot of visitors and economic value to the area,” Vanderberg said.

Additional funding is expected for the West Michigan Sports Commission that supports youth and amateur sports.

“We will all benefit and our families will benefit and our businesses by being able to attend great events … in our hometown,” Vanderberg said.

The hotel tax increase will go into effect on Jan. 1, 2025.

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