OKC voters approve hotel tax increase
08/28/2024
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Tourism in Oklahoma City will get a much-needed boost following voter approval on Aug. 27 to increase the City’s portion of the hotel tax from 5.50% to 9.25%. The new rate will take effect Oct. 1, 2024.
The tax is charged to people who stay overnight in a hotel or rent a home-sharing property in OKC.
The additional funding will be used to attract more visitors by scaling advertising and marketing efforts and supporting large events and festivals. A portion of the funds would also be used to improve the OKC Fairgrounds and OKC Convention Center, anchor venues for national and international equine, sporting events and conventions that draw millions of visitors annually.
“All OKC does is win,” Mayor David Holt said. “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.”
The 3.75% increase is projected to bring in an additional $11.6 million, which will be allocated to as follows:
- 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 distributed 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 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. “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.”
When considering hotel tax and assessments at checkout, Oklahoma City lagged peer cities, as well as smaller markets such as Tulsa and Wichita:
Memphis 19.75%
San Antonio 19%
Kansas City 18.35%
Austin 17%
Tulsa 16.52%
Wichita 16.25%
OKC 14.13% (currently)
How the funding will be used
Visit OKC’s tourism promotion efforts bring conventions, sporting events and leisure travelers to fill hotel rooms, restaurants and facilities.
“Tourism employs 1 in 20 locals and is the third largest industry in the state, with Oklahoma City leading the way in visitation and economic impact,” City Manager Craig Freeman said. “Thanks to investments we’ve made through MAPS, tourism is now a significant and growing aspect of our economy.”
History of OKC’s Hotel Tax
In 1972, the voters of Oklahoma City approved a “room tax” of 2% to provide a source of dedicated revenue to promote conventions and tourism in Oklahoma City. In Dec. 2004, Oklahoma City residents approved a 3.5% increase for an event sponsorship fund (0.5 cents) and OKC Fairgrounds improvements (3 cents), bringing the current hotel tax total to 5.5%. The approved rate took effect in 2005.
“Oklahoma City’s hotel room tax helps our City thrive by attracting national conventions and sporting events and providing support for our venues and visitor services,” City Manager Craig Freeman added. “It’s been 20 years since the tax was adjusted and 52 years since we’ve increased funding for tourism promotion. This update allows us to better keep pace with OKC’s growth and our competitive peer set of destinations.”
The hotel tax ordinance was introduced at the May 7 City Council meeting, a public hearing was held on May 14 and the Citywide election was Aug. 27, 2024.
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Media Contact: Kristy Yager, (405) 297-2550, kristy.yager@okc.gov
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City Hall, 200 N Walker Ave., Oklahoma City, OK 73102
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