Council sets December 14 vote on hotel tax increase

(September 14, 2005) – City Council has approved a December 14 election date for the proposed increase in the City’s Hotel Tax.

The vote would technically repeal the existing 2 percent tax and replace it with a tax of 5.5 percent. Slightly less than half the revenue generated will be earmarked for the State Fairgrounds, and will be used to pay off 30-year revenue bonds which will be used exclusively to fund new and improved horse and livestock facilities.

The hotel tax was first approved by voters at its current 2 percent rate on December 5, 1972.