'This is a big victory for our city': Oklahoma City voters approve hotel tax increase

OKLAHOMA CITY (KFOR) - Oklahoma City voters approved a hotel tax increase on Tuesday.

Officials say the city's portion of the tax will increase from 5.50% to 9.25% and will be charged to people staying overnight in hotels or renting home-sharing properties in OKC.

The extra funding will go towards advertising and marketing efforts to improve tourism. The funds will also support events and festivals, the OKC Fairgrounds and OKC Convention Center, venues for national and international equine, sporting events and conventions that may bring in millions of guests.

“All OKC does is win,” said Mayor David Holt. “This is a big victory for our city. By giving us the resources to compete – without taxing our residents – this solidifies our status as a tourist destination. Those visitors fuel our economy and help fund our core city services. This result also illustrates why I call us the most mission-focused city in America. Our voters’ commitment to progress remains strong. We continue to do what it takes to remain a top 20 city.”

According to the City of OKC:

The 3.75% increase is predicted to bring in an extra $11.6 million, which will be used for the following:

• 75% tourism promotion, direct funding to promote and/or foster the convention and/or tourism (visitor) development of Oklahoma City.
• 13.3% event sponsorships.
• 6.7% OKC Fairgrounds for improvements, not including operational costs.
• 5% OKC Convention Center for improvements, not including operational costs.

The hotel tax is currently 5.5% and is allocated as follows:

• 55% OKC Fairgrounds for improvements, not including operational costs.
• 36% Tourism Promotion, direct funding to promote and/or foster the convention and/or tourism (visitor) development of Oklahoma City.
• 9% Event Sponsorships.

The city says the 9.25% hotel tax is in addition to the 4.5% state sales tax and the 4.125% City sales tax, for 17.875%.

“On behalf of Visit Oklahoma City and the nearly 35,000 locals that work in hospitality, I want to thank the citizens of OKC for voting in support of tourism and the vital role it plays in our community and economy,” Visit Oklahoma City President Zac Craig said.

Visit OKC hopes to put the additional funds towards conventions and sporting events that encourage visitors to utilize hotel rooms, restaurants and facilities.

“We’ve built a dynamic destination, and this increased funding allows us to attract visitors that are the lifeblood of our districts, small businesses, hotels and attractions.” Craig added.

The hotel tax ordinance was presented at the May 7 City Council meeting, a public hearing was held on May 14 and the citywide election was August 27, 2024.

The new rate will begin on October 1, 2024.