View Full Version : Hotel Tax Vote Set for Dec. 14th



Patrick
09-15-2004, 11:09 AM
Well, it's finally going to be on the ballot. I'm happy. This will be a great start to helping fund much needed improvements to our livestock facilities at State Fair Park. I know there won't be enough money to fully renovate the fairgrounds, but at least this will give us a good start.

I just hope it passes. We've been fortunate with the MAPS Programs because they haven't "appeared" to raise taxes. They've just been extensions of an existing sales tax that was first voted for with MAPS I.

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"Special election set for hotel tax vote
by Heidi R. Centrella
The Journal Record
9/15/2004

Oklahoma City voters will decide at a special election on Dec. 14 whether the city should repeal the existing 2 percent hotel tax and enact a 5.5 percent hotel tax levy to further strengthen the city's visitor-based economy.
Three percent of the proposed increase would be dedicated to capital improvements of the equine facilities at the State Fair Park, generating a bond issue in the neighborhood of $50 million. The remaining 0.5 percent would go to the Convention and Visitors Bureau to promote and secure events citywide.

"I would encourage the public to realize that a majority of this tax that is going to be spent is coming from out-of-state people who are using our facilities. And money that they are going to be paid for is going to help define and really make our facilities much better at the fairgrounds, which brings in lots of money," said Jerry Foshee, Ward 5 city council member.

"When you talk about a tax, everybody kind of turns their head, but it's about time people who are using our city are helping to help our city. We have to improve our fairgrounds area or we're going to lose those horse shows, and that's the bottom line."

The city's hotel tax rate has remained at 2 percent for nearly 32 years and, according to city officials, is lower than comparable cities.

Tulsa is building an 18,000-seat arena for its shows, and has plans to put $40 million into its facilities to create another 1,000 horse stalls.

"The competition is getting heavy out there and they want what we have here," said Guy Liebmann, Ward 8 council member. "We need to be more competitive on this issue and a 5.5 percent room tax is still lower than most cities."

Former Mayor Ron Norick said it is because so few renovations have been made at the fairgrounds that the city has lost out on several horse shows, including the National Arabian Horse Show, which Oklahoma City has courted for many years to no avail. Tulsa, however, has secured the show from 2008 through 2010.

According to Mike Farney, chairman of the Oklahoma City Convention and Visitors Commission, the 0.5 percent for the visitors bureau would make Oklahoma City more aggressive and competitive in bringing visitors into the city.

Considering comparable cities with CVB budgets in the $2 million to $5 million annual budget range, already Oklahoma City's bureau invests 53 percent toward direct promotion. A survey conducted by the City International Convention and Visitors Bureaus shows a mean average of 43 percent in cities comparable to Oklahoma City.

The additional 0.5 percent increase would generate approximately $660,000 annually in new dollars to add to the budget, which would raise the direct promotion component to 62 percent, compared to 43 percent in comparable cities.

Mayor Mick Cornett and the Greater Oklahoma City Chamber announced on Tuesday that they will join forces to maintain the city's "position as Horse Show Capital of the World."

The 15 major horse shows held annually in Oklahoma City generate $181.9 million for the city, creating more than 3,600 jobs with a payroll of $66.5 million, according to the chamber.

"A growing number of cities are building state-of-the-art equine facilities to enable them to go after many of the shows we host in our city," said Cornett. "It's time to get to work to make sure Oklahoma City has the world-class facilities needed to compete in this global marketplace and keep our horse shows and the revenue they generate. I look forward to working with the Oklahoma City Chamber to inform voters about this critical issue."

Cornett will serve as chairman of the campaign, and Norick will serve as campaign treasurer.

"A goal of the campaign is to help residents understand that travelers to Oklahoma City, not residents, will be generating the money to improve our horse show facilities," said Roy Williams, president and CEO of the chamber. "So, if you live in Oklahoma City, you get all the benefits without any of the costs."

Williams said that even with a 3.5 percent increase, Oklahoma City's hotel tax still would be lower than most competing cities."

mranderson
09-15-2004, 11:12 AM
My vote is yes.