Oklahoma City Voters Approve Hotel Tax Hike for City Projects
Oklahoma City residents have voted to approve an increase in the city’s hotel tax, marking a significant step for future development and tourism initiatives. This decision will raise the tax rate on hotel stays, generating crucial additional revenue earmarked for city-wide projects and the ongoing operational costs of the new convention center.
New Funds for OKC’s Future
What’s Changing and Why?
Voters narrowly approved a two-percentage-point increase to the city’s hotel tax. Starting July 1, 2023, the tax on hotel and motel stays within Oklahoma City will rise from 7.25% to 9.25%. This adjustment comes as the existing hotel tax, primarily dedicated to paying off debt for the MAPS 3 Convention Center, is nearing its sunset date. The city sought this increase to ensure continuous, dedicated funding for the modern OKC Convention Center’s operations and to support vital tourism and marketing efforts.
The ballot measure passed with an incredibly slim margin, highlighting the divided opinions among voters, with 50.1% in favor and 49.9% against. Despite the low voter turnout, the outcome solidifies a new revenue stream for the city’s ambitious plans.
How Will Funds Be Used?
The revenue generated from the increased hotel tax will be strategically allocated. Three-quarters of the new funds are designated for the ongoing operational and maintenance costs of the state-of-the-art Oklahoma City Convention Center, ensuring it remains a competitive venue for large events and conventions. The remaining one-quarter will directly benefit the Oklahoma City Convention and Visitors Bureau (CVB). The CVB plays a pivotal role in marketing OKC as a premier destination, attracting national conventions, sporting events, concerts, and other significant gatherings that boost the local economy and enhance the city’s profile.
Furthermore, these funds are critical in supporting various MAPS 4 initiatives. Specific projects that will benefit include the construction of a multi-purpose stadium at the State Fair Park, the development of new youth sports facilities, improvements to the animal shelter, and the establishment of a mental health crisis center. By primarily taxing visitors, the city aims to fund these local enhancements without directly burdening residents with additional sales or property taxes.
Impact on Visitors and Locals
A Comparison of Rates
The hotel tax increase means Oklahoma City’s overall lodging tax rate will be 14.85%, including the state’s 4.5% sales tax and the new city tax. This keeps OKC competitive with other major cities in the region.
| Category | Old Rate (Pre-July 1, 2023) | New Rate (Post-July 1, 2023) |
|---|---|---|
| City Hotel Tax Rate | 7.25% | 9.25% |
| Combined Total Lodging Tax (City + State) | 11.75% | 14.85% |
| Primary Use of City Funds | MAPS 3 Convention Center Debt | Convention Center Operations, MAPS 4 Projects, Tourism Marketing |
What This Means for OKC
While the tax is paid by visitors, the benefits ripple throughout the Oklahoma City community. A well-funded Convention Center allows the city to attract larger events, bringing in out-of-town money that supports local businesses, creates jobs, and generates further sales tax revenue. The CVB’s enhanced marketing budget means more exposure for OKC, potentially drawing in even more tourists and business travelers. Additionally, the direct funding for MAPS 4 projects like youth sports complexes and a mental health crisis center directly improves the quality of life and available services for Oklahoma City residents.
What’s Next for the City
With the approval, the city administration will now move forward with implementing the new tax rate by July 1, 2023. Local officials and the OKC CVB will continue their efforts to attract conventions and promote the city, now with a more stable and robust financial foundation for these endeavors. Residents can expect to see progress on the various MAPS 4 projects slated to receive support from these new funds over the coming years, enhancing infrastructure, recreational opportunities, and essential social services.
Frequently Asked Questions
- Who primarily pays this increased hotel tax?
The hotel tax is primarily paid by visitors staying in Oklahoma City hotels and motels, not by residents on their typical purchases. - When does the new hotel tax rate officially take effect?
The new 9.25% hotel tax rate will begin on July 1, 2023. - What is MAPS 4, and how does this tax support it?
MAPS 4 is Oklahoma City’s fourth iteration of a sales tax-funded capital improvement program. This hotel tax supports specific MAPS 4 initiatives by freeing up other general funds and providing a dedicated revenue stream for projects like the fairgrounds stadium, youth sports facilities, the animal shelter, and the mental health crisis center. - Will this increase make Oklahoma City less competitive for tourism and conventions?
City officials believe that even with the increase, Oklahoma City’s total lodging tax rate remains competitive when compared to other major cities like Dallas, Fort Worth, Tulsa, Austin, and Kansas City. The enhanced funding for the Convention Center and tourism marketing should help maintain its appeal. - How close was the vote for this measure?
The measure passed by a very narrow margin, with approximately 50.1% of voters in favor and 49.9% against, decided by just 74 votes.
Ultimately, the approved hotel tax increase represents a strategic investment in Oklahoma City’s future, funded by those who visit our city, ensuring continued growth, improved public amenities, and a stronger local economy for all residents.
OKC Voters Approve Hotel Tax Hike for City Projects
