Tuesday, May 7, 2024

Voters to decide on tax increase for hotel, motel rooms | News

City officers hope voters will approve a charge hike that might practically double the present tax on Norman lodge and motel rooms as early as May.

Visit Norman Executive Director Dan Schemm this week requested the City Council to assist his bid to increase the 5% tax to 8%. It can be the primary increase in 10 years, he informed the council Tuesday throughout a examine session.

According to Schemm’s presentation, half the tax income is shared with the Norman Arts Council and Parks and Recreation, which each obtain 25% of the funds.

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The projected income this 12 months for the tax is $1.65 million with $412,500 every allotted to the humanities council and parks and $825,000 to Visit Norman, his presentation confirmed.

The request comes forward of the University of Oklahoma’s determination to be a part of the Southeastern Conference for athletics and increase seating for soccer –- choices Schemm believes will increase pupil inhabitants and tourism.

Tourism’s financial influence in Cleveland County is $359 million in spending, $101.5 million in earnings and accounts for not less than 4,340 jobs. Local tax influence is $12.4 million and state tax is $13.8 million in accordance to a Travel Oklahoma examine.

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If voters approve the increase, a portion of the extra cash would fund the Norman Sports Commission as a 501c6 division of Visit Norman, Schemm stated. The fee, which might be designed to entice sports activities tournaments to Norman, has not but fashioned.

“So, I’ve been here almost nine years and about half that time I feel like I’ve been working on trying to find a way to fund a sports commission,” Schemm stated Tuesday.

Thousands of sports activities commissions throughout the nation use the organizations to entice sports activities tourism to communities. Tulsa has one and Oklahoma City is working to kind one other, Schemm stated.

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The further income would whole $1 million with a further $787,500 for Visit Norman and the sports activities fee and $262,500 for the humanities council, he informed panel members.

The additional money wouldn’t enhance further funding to parks and recreation.

Asked if Jason Olsen, parks and recreation director, was “okay” with the proposed association, he answered that he was “supportive of whatever” council agreed to.

Olsen stated he believed it could be a profit to the division to entice extra occasions and assist town afford extra upgrades to park options which serve youth.

Ward 2 council member Lauren Schueler expressed concern that huge tournaments may squeeze out native leagues for out there venue bookings.

Schemm stated the group wouldn’t be in command of venue bookings and an advisory committee for the sports activities fee would come with native stakeholders resembling parks and recreation workers.

“We’ll want all these venue operators on this advisory board working closely with us on this,” Schemm stated. “It’s not going to be a tournament every weekend.”

The charge increase would imply Norman’s will probably be larger than Oklahoma City’s 5.5%, a chart in his presentation confirmed.

Cities within the SEC or Big 12 Conference confirmed tax charges as excessive as 15%, Schemm’s presentation confirmed.

Ward 3’s Kelly Lynn requested why not “go for broke” and lift it even larger.

“What normal person has ever looked at that data unless we hold it up to their face all the time and say, ‘hey just reminding you that Norman has one of the highest rates in the state?’”

Schemm stated the speed could go unnoticed by “leisure travelers” however conference and convention organizers take into account the room tax charge, and it could be necessary for hoteliers to assist it.

“If our hotels opposed this, it would certainly make it much harder to pass,” Schemm stated. “We want to make sure our partners at hotels are in favor of it.”

Lynn agreed.

Staff stated an ordinance would seem on the council’s agenda in early February.



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