Mid City Times

On February 14, 2024, the City Council made a decision that will impact hotel guests in the near future. They voted in favor of putting an additional 2% hotel occupancy tax (HOT) on the upcoming May 4 ballot. This tax, which is paid by individuals renting hotel rooms, would be in addition to the existing 15% general state and local HOT.

If approved by the voters, this 2% increase would bring the total HOT to 17%, a rate currently observed in Houston and Austin. The primary purpose of this additional tax is to generate revenue for the Fort Worth Convention Center renovation. It is estimated that the 2% HOT will contribute $10 million per year towards this project.

The Fort Worth Convention Center has been in need of renovation for some time, and the costs associated with the construction have risen due to inflation and other factors. To address this, the City Council has designated the Convention Center as a "venue" project under state law. In doing so, they have identified the hotel occupancy tax as the proposed funding source.

It is important to note that a voter-approved venue project cannot be supported by property tax or property-tax-backed bonds. The Comptroller's Office has already reviewed the Fort Worth Convention Center venue designation and has issued a letter stating that there will be no significant negative impact on state revenue.

Ultimately, the decision lies in the hands of the voters. They will have the opportunity to determine whether or not the venue designation and the proposed HOT are approved. Early voting will begin on April 22, and Election Day is set for May 4.

In conclusion, the City Council's decision to put an additional 2% hotel occupancy tax on the ballot will have a direct impact on hotel guests in the future. The revenue generated from this tax will be used to support the much-needed renovation of the Fort Worth Convention Center. The voters will have the final say on this matter, and their decision will shape the future of this project.