Hotel Tax increase vote on August 27...

[okcrun]

I fail to see how it’s well said when the supposedly pined-for details are fully available with only a mere click of the mouse or the tap of a finger.

What are you talking about? All of those links are just generic verbiage about "scaling marketing efforts" to attract more conventions and tourists. I'm talking about what is the return on investment on these marketing dollars spent? One would think they would have done internal estimates saying if we increase our budget X% on marketing, we would expect to attract X more tourists and conventions annually. Just strange wording like that doesn't appear anywhere. It's almost like they just looked at the hotel tax rate of comparable cities and decided this was an easy way to increase their budget.

[okcrun]

Oops sorry duplicate post

[Jeepnokc]

I am not versed on the State Fair Board other than comments that have been made on this site. I am under the impression that the State Fair Board has little oversight or accountability. Is this correct? Pete.....can you fill us in on this as I recall correctly, you have eluded to this in the past. The fairgrounds brings a lot of tourism in to OKC and does great things but there should be accountability and transparency before we continue to give them more money.

[Pete]

The fairgrounds does not have public meetings and doesn't share meeting minutes, so it's a strange situation where the trust oversees assets completely owned by the City and gets tons of tax dollars, but is pretty secretive in their operation.

[Jeepnokc]

The fairgrounds does not have public meetings and doesn't share meeting minutes, so it's a strange situation where the trust oversees assets completely owned by the City and gets tons of tax dollars, but is pretty secretive in their operation.

Do they get audited or have anyone independently tracking the public money?

[OkiePoke]

I'm surprised the Fair Grounds get's that large of chunk of money... What is a common distribution of that tax in other cities? Or does it vary so greatly?

[Pete]

Do they get audited or have anyone independently tracking the public money?

Yes, they do.

They operate as a nonprofit so some info is public, such as their President making more than $320K, which is more than our City Manager (who oversees 5,000+ employees).

[citywokchinesefood]

Yes, they do.

They operate as a nonprofit so some info is public, such as their President making more than $320K, which is more than our City Manager (who oversees 5,000+ employees).

Please tell me you are joking Pete. I would really like to see someone justify that level of compensation for that position. Literally insane.

[Urbanized]

Events at the state fairgrounds annual draw more room nights and other economic impact than do conferences/conventions and sports business (think WCWS, many other events at USA Softball, Thunder, collegiate sports, Riversport, high school championships, youth soccer, cheerleading)…COMBINED. The state fairgrounds is one of the largest generators of room taxes and sales taxes in the state.

Due to state constitutional limitations on municipalities benefitting from property tax, the City of OKC - more so than most major cities in other states - is almost completely reliant on sales tax to operate and to provide municipal services. THAT is why you see so much continued investment there.

[Pete]

Looks like the tax increase was approved today with about 66% of the vote.

[Laramie]

Oklahoma City Proposition 1

Votes - Percent

Yes - 21,472 - 66.4%

No - 10,851 - 33.6%

Oklahoma City voters approved raising the hotel tax from 5.5% to 9.25%. With the increase, the tax could bring in a little more than $11 million.

The additional revenue will fund equine and livestock shows, the convention center, the National Cowboy and Western Heritage Museum, and the Women's College World Series.

.

[BoulderSooner]

[CENTER]



The additional revenue will fund equine and livestock shows, the convention center, the National Cowboy and Western Heritage Museum, and the Women's College World Series.

.

75% of the new tax revenue goes directly to tourism promotion NOT to those events ..

[Pete]

Press release:

********

OKC voters approve hotel tax increase
08/28/2024

Tourism in Oklahoma City will get a much-needed boost following voter approval on Aug. 27 to increase the City’s portion of the hotel tax from 5.50% to 9.25%. The new rate will take effect Oct. 1, 2024.

The tax is charged to people who stay overnight in a hotel or rent a home-sharing property in OKC.

The additional funding will be used to attract more visitors by scaling advertising and marketing efforts and supporting large events and festivals. A portion of the funds would also be used to improve the OKC Fairgrounds and OKC Convention Center, anchor venues for national and international equine, sporting events and conventions that draw millions of visitors annually.

“All OKC does is win,” Mayor David Holt said. “This is a big victory for our city. By giving us the resources to compete – without taxing our residents – this solidifies our status as a tourist destination. Those visitors fuel our economy and help fund our core city services. This result also illustrates why I call us the most mission-focused city in America. Our voters’ commitment to progress remains strong. We continue to do what it takes to remain a top 20 city.”

The 3.75% increase is projected to bring in an additional $11.6 million, which will be allocated to as follows:

75% tourism promotion, direct funding to promote and/or foster the convention and/or tourism (visitor) development of Oklahoma City.
13.3% event sponsorships.
6.7% OKC Fairgrounds for improvements, not including operational costs.
5% OKC Convention Center for improvements, not including operational costs.

The hotel tax is currently 5.5% and is distributed as follows:
55% OKC Fairgrounds for improvements, not including operational costs.
36% Tourism Promotion, direct funding to promote and/or foster the convention and/or tourism (visitor) development of Oklahoma City.
9% Event Sponsorships.
The 9.25% hotel tax is in addition to the 4.5% state sales tax and the 4.125% City sales tax, for 17.875%.

“On behalf of Visit Oklahoma City and the nearly 35,000 locals that work in hospitality, I want to thank the citizens of OKC for voting in support of tourism and the vital role it plays in our community and economy,” Visit Oklahoma City President Zac Craig said. “We’ve built a dynamic destination, and this increased funding allows us to attract visitors that are the lifeblood of our districts, small businesses, hotels and attractions.”

When considering hotel tax and assessments at checkout, Oklahoma City lagged peer cities, as well as smaller markets such as Tulsa and Wichita:

Memphis 19.75%
San Antonio 19%
Kansas City 18.35%
Austin 17%
Tulsa 16.52%
Wichita 16.25%
OKC 14.13% (currently)

How the funding will be used

Visit OKC’s tourism promotion efforts bring conventions, sporting events and leisure travelers to fill hotel rooms, restaurants and facilities.

“Tourism employs 1 in 20 locals and is the third largest industry in the state, with Oklahoma City leading the way in visitation and economic impact,” City Manager Craig Freeman said. “Thanks to investments we’ve made through MAPS, tourism is now a significant and growing aspect of our economy.”

History of OKC’s Hotel Tax

In 1972, the voters of Oklahoma City approved a “room tax” of 2% to provide a source of dedicated revenue to promote conventions and tourism in Oklahoma City. In Dec. 2004, Oklahoma City residents approved a 3.5% increase for an event sponsorship fund (0.5 cents) and OKC Fairgrounds improvements (3 cents), bringing the current hotel tax total to 5.5%. The approved rate took effect in 2005.

“Oklahoma City’s hotel room tax helps our City thrive by attracting national conventions and sporting events and providing support for our venues and visitor services,” City Manager Craig Freeman added. “It’s been 20 years since the tax was adjusted and 52 years since we’ve increased funding for tourism promotion. This update allows us to better keep pace with OKC’s growth and our competitive peer set of destinations.”

The hotel tax ordinance was introduced at the May 7 City Council meeting, a public hearing was held on May 14 and the Citywide election was Aug. 27, 2024.

[gjl]

So only about 32000 people voted. I couldn't find how many registered voters are in OKC, only OK County which was 445700. I figured it would be a pretty small turnout.

[OKCRealtor]

Yes, they do.

They operate as a nonprofit so some info is public, such as their President making more than $320K, which is more than our City Manager (who oversees 5,000+ employees).

Wow lol

[bison34]

So only about 32000 people voted. I couldn't find how many registered voters are in OKC, only OK County which was 445700. I figured it would be a pretty small turnout.

I guess this wasn't a controversial enough topic to warrant people to care.

I am glad they voted yes, but am slightly skeptical as to what benefits OKC will see from the excess revenue (or if there will be a large increase in tourism).

[GaryOKC6]

The facilities at the fairgrounds are booked 300 days out of the year. The horse shows are a small part of that but generate over 250 million a year for OKC.

[jn1780]

I guess this wasn't a controversial enough topic to warrant people to care.

I am glad they voted yes, but am slightly skeptical as to what benefits OKC will see from the excess revenue (or if there will be a large increase in tourism).

If OKC was stagnant I would agree, but with OKANA, new Arenas (the big one and the one at the fairgrounds), 2028 Olympics, zoo improvements, etc, now is the time to ramp up the marketing.

[kukblue1]

So what is the Tax in Moore, Norman, Edmond, Yukon. How much am I saving per $100 if I don't stay in OKC.

[Laramie]

75% of the new tax revenue goes directly to tourism promotion NOT to those events ..

So you're saying those events are not apart of tourism . . .

Thank you, Pete

The 3.75% increase is projected to bring in an additional $11.6 million, which will be allocated to as follows:

75% tourism promotion, direct funding to promote and/or foster the convention and/or tourism (visitor) development of Oklahoma City.
13.3% event sponsorships.
6.7% OKC Fairgrounds for improvements, not including operational costs.
5% OKC Convention Center for improvements, not including operational costs.

.

[LocoAko]

So what is the Tax in Moore, Norman, Edmond, Yukon. How much am I saving per $100 if I don't stay in OKC.

Compared to OKC's new tax rate, you'd save (per $100)

$1.25 by staying in Norman
$3.25 by staying in Edmond

I couldn't easily find numbers for Moore or Yukon, although keep in mind large swaths of what we call Moore and Yukon are actually OKC. As you can see, the difference is fairly negligible.

[Urbanized]

So what is the Tax in Moore, Norman, Edmond, Yukon. How much am I saving per $100 if I don't stay in OKC.

Norman and Edmond have both raised their room taxes in the past 18 months. Norman is at 8% (vs OKC’s 5.5% today, 9.25% when the new tax goes into effect) and Edmond went from 4% to 6%. Honestly I’d think most people would expect room tax to be higher in a major city than in a bedroom community for the same city. The suburbs indirectly benefit from the much larger marketing efforts of the OKC CVB, which is tasked with the heavy lifting for the metro market.

[gjl]

One thing I heard from the people who weren't supporting it was that sometimes chronic homeless people and people that get evicted sometimes get hotel rooms and it would adversely effect those people who can barely afford to stay in hotels. I am in Warr Acres (couldn't vote in this one) and at the last WA city council meeting they were discussing raising their hotel tax. WA only has one hotel on NW Highway. WA is in a bit of a financial pickle again but they say a lot of small towns are suffering from revenue short falls since Covid. WA sales tax and use tax is currently 4% for a total of 8.5%.

[jn1780]

Compared to OKC's new tax rate, you'd save (per $100)

$1.25 by staying in Norman
$3.25 by staying in Edmond

I couldn't easily find numbers for Moore or Yukon, although keep in mind large swaths of what we call Moore and Yukon are actually OKC. As you can see, the difference is fairly negligible.

Yeah, it's like any other travel destination. You pay more for being closer to what your actually visiting.

[PhiAlpha]

One thing I heard from the people who weren't supporting it was that sometimes chronic homeless people and people that get evicted sometimes get hotel rooms and it would adversely effect those people who can barely afford to stay in hotels. I am in Warr Acres (couldn't vote in this one) and at the last WA city council meeting they were discussing raising their hotel tax. WA only has one hotel on NW Highway. WA is in a bit of a financial pickle again but they say a lot of small towns are suffering from revenue short falls since Covid. WA sales tax and use tax is currently 4% for a total of 8.5%.

You'd have to spend months training for such high level mental gymnastics to avoid getting dizzy.