reprinted from:

Visit the Kansas City Star website

 

Hotel-tax increase heads to passage

 

By Mike Rice and Gromer Jeffers Jr.
Copyright 1999 Kansas City Star Co.
Reprinted with permission
Article date:
August 4, 1999
 

Kansas City voters on Tuesday liked the idea of a tax that would be paid mostly by out-of-towners.

They approved an increase in the city's hotel/motel occupancy tax, which is intended to improve meeting facilities and bolster the city's tourism strategies. The proposal won with 64 percent of the vote, a nearly 2-1 ratio.

Voters also narrowly approved an increase in the size of the Board of Parks and Recreation Commissioners, an increase in certain license fees and a charter change.

The hotel/motel tax, also known as the tourism tax, is paid only by hotel and motel guests.

The tax will rise from 5.5 percent to 6.5 percent and generate $2.7 million a year. The increase amounts to $1 for a $100 room.

"This is a great day for Kansas City's travel business," said Wayne Chappell, president of the Convention and Visitors Bureau of Greater Kansas City.

With the new money, Chappell said, the bureau's first goal will be to buy more advertising and find ways to increase the city's hotel and motel occupancy rate.

"We now have some additional firepower to do all of that," he said.

The bureau and Hotel and Motel Association of Greater Kansas City campaigned for the tax increase. They said Kansas City needed to be better marketed as a destination place.

The new money will be divided three ways:

The city will get about $1.5 million for maintenance and operation of its convention and entertainment facilities, including Bartle Hall, Kemper Arena and the American Royal.

The Convention and Visitors Bureau will get $1 million to bolster its advertising and promotions to make Kansas City more competitive with other cities for conventions.

The remainder will go to the city's Neighborhood Tourist Development Fund to help pay for local festivals and fairs.
 

In the News