Fort Worth is seeking to increase the taxes it collects from hotels.
The City of Fort Worth has approved a resolution to increase its Hotel Occupancy Tax by 2% to help fund over $650 million in construction projects, a familiar tactic used by local officials to fund Dallas’ new convention center.
Though city officials have approved the resolution, a final decision will be put to voters on May 4.
Overall, Fort Worth is seeking to raise its hotel tax from 15% to 17% to fund a total of $659 million in construction costs downtown. This includes $606 million to support phase 2 of the city’s convention center expansion and $53 million for incentives related to the Omni Hotel’s expansion, per the Fort Worth Report.
For reference, Dallas and Fort Worth both currently levy a 15% hotel tax on owners, operators (or managers of hotels), motels, bed-and-breakfasts, condominiums, apartments, or houses charging $15 or more each day of stay. This means if a hotel room costs $150 per night, guests would be paying $22.50 toward the city’s hotel tax.
Austin and Houston, on the other hand, each have a 17% hotel occupancy tax.
While some critics are concerned about the impact the tax increase will have on tourism in the city, proponents believe it will be a “catalyst” for other construction projects in the downtown area.
“It’s exciting to see all these things in motion,” said Mike Crum, director of the public events department for the City of Fort Worth, per the FWR.
With economic development accelerating across the city, Crum said the proposed increase is unlikely to harm tourism in Fort Worth but instead enhance the city’s convention center and ultimately make Fort Worth a more attractive destination for visitors, residents, and businesses.
Completing the convention center expansion is critical to supporting Fort Worth’s economy, said Bob Jameson, president and CEO of Visit Fort Worth, which promotes the city’s tourism industry.
“I appreciate the city’s leadership exploring ways to keep Fort Worth competitive, and Visit Fort Worth is ready to support their direction,” said Jameson, per the FWR.
