OKC City council moves forward with proposed hotel tax increase

OKLAHOMA CITY, Okla. (KFOR) – Oklahoma City’s city council unanimously voted to move forward with a proposed hotel occupancy tax increase on Tuesday. The increase would go from the current rate of 5.5% to 9.25%, charged to visitors for each night’s stay in hotels or home-share properties. The approval of the ordinance allows for two public hearings on the measure. The first will be held May 14^th and the second on May 21^st, before going back to the city council for final approval. If the council gives the hotel tax hike the thumbs up, it will then go before voters for a special election in August.

Zac Craig, president of the city’s convention and tourism bureau, presented the plans before the council. He said the increase had been considered for years.

 "We had discussions all the way back to 2017 and 2018," said Craig.

The last time Oklahoma City voters approved an increase in the hotel tax was in 2004. It passed with 89.4% of the votes.

If passed by voters, the 3.75% increase is projected to bring an additional $11.6 million in revenue, with 75% going towards tourism promotions, 13.3% towards event sponsorships, and 11.7% going to capital improvements for the OKC Fairgrounds and Convention Center.

Nikki Nice, Ward 7 councilwoman, had a few questions Tuesday about why the money would go towards these specific facilities.

"We're picking out two particular places," said Nice. "I think it's unfortunate that we're just picking two places to place capital improvements on instead of fully looking at our inventory of public facilities."

The Convention Center was recently replaced using MAPS-4 month in 2020. The OKC Fairgrounds just received money from naming rights to its coliseum. After bringing up these concerns, Craig and the council said it would need to make sure it was clear, to voters, where the money would be going and why there was a need.

“These will be for capital improvements,” said Craig. “At the end of the day it takes pressure of the general fund.”

There will be a similar measure on the ballet for people living in Edmond this summer. A “lodging tax” increase, jumping from 4% to 6%, goes before voters June 18^th.