ABOUT THE HOTEL OCCUPANCY TAX

The Hotel Occupancy Tax proposition asks voters to approve an additional 2% tax rate to be added to a visitor’s stay in a Wichita Falls hotel or motel.

This money will be collected from a person staying in a Wichita Falls hotel or motel and used for repairs, updates and improvements to the MPEC and Memorial Auditorium Performance Hall facilities.


FAQs

Will I, as a citizen of Wichita Falls, have to pay this tax?

If approved, this tax will only be paid by a person staying in a hotel or motel within Wichita Falls.

How does this impact me as a resident of Wichita Falls?

There are NO tax increases for Wichita Falls residents. The additional 2% hotel occupancy tax revenues will provide a way to pay for improvements, repairs, and updates so local property taxpayers are not burdened with the costs.

What is a Hotel Occupancy Tax?

A tax charged to a person for each day they stay in a hotel.

What is Wichita Falls current Hotel Occupancy Tax rate?

The State of Texas hotel occupancy tax rate is 6% and the City of Wichita Falls hotel occupancy tax rate is 7% for a total combined rate of 13%. Approval of the 2% hotel occupancy tax rate will change the hotel occupancy tax to a total rate of 15%. For example, the total tax for a hotel room that costs $50 would increase by only $1. The total tax for a hotel room that costs $100 would increase by only $2. The total tax for a hotel room that costs $150 would increase by only $3.

What is the Hotel Occupancy Tax revenue currently being spent on?

Tax revenue from the city hotel occupancy tax, per the State of Texas, may only be used to directly enhance and promote tourism and the convention and hotel industry. Currently, the revenues from the hotel occupancy tax are used to:

  1. Market and promote Wichita Falls, and attract conventions and events through the Convention and Visitors Bureau.
  2. To off-set costs of the MPEC. (Spectra Venue Management only manages the facilities. They are NOT responsible for facility maintenance and repairs).
  3. Partner with the Wichita Falls Alliance for Arts and Culture to administer grant funding that directly promotes the arts through advocacy, publicity, funding and policy development.

Why does the City need to add 2% to the current hotel occupancy tax rate?

There are updates and repairs needed to the MPEC and Memorial Auditorium Performance Hall. The additional 2% hotel occupancy tax revenues will provide a way to pay for improvements, repairs, and updates so local property taxpayers are not burdened with the costs.

What will the additional revenue be spent on?

The revenue will be used for repairs, updates and improvement projects for the MPEC and Memorial Auditorium Performance Hall facilities. These projects can include roof repairs, sound system upgrades, carpeting and paint, LED arena lights, replacement panels for ag events, bucking chutes, roping chutes, stage improvements and lighting upgrades.

How long before the improvement projects will begin?

After the election is held and if the proposition passes, the additional revenue should be available within 90 days to 6 months after the fee is imposed. Once the revenue is collected, the improvement projects can begin.

How much will the 2% hotel occupancy tax yield annually?

It will generate approximately $550,000 annually.