[Archived] Question #64: What amount of revenue would an increase in the meals tax rate or transient occupancy tax rate generate for general operating and capital expenditure needs?

Question:  

What amount of revenue would an increase in the meals tax rate or transient occupancy tax rate generate for general operating and capital expenditure needs?

Response:  

A 1% increase in the meals tax rate, from 4% to 5%, would produce approximately $4.75 million annually and could be used generally for operating and/or capital expenditures. A 1% increase in the transient occupancy tax rate, from 6.5% to 7.5%, would produce approximately $1.8 million, and a ten-cent increase in the hotel room night charge, from $1 per night to $1.10 per night would generate approximately $114,400. Revenue generated from either the meals tax or hotel tax sources could also be used generally for operating and/or capital expenditures. 

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