Visitors to Mustang's one hotel may have to pay more for their room if Mustang City Council members approve a new hotel-motel tax.
City Manager Mike Rutledge said staff could bring an ordinance proposal to Council members within the next few weeks. While the Luxury Inn is the only business in town that would be affected, he said city officials are hopeful Mustang will draw other hotels in coming months.
“We are anticipating more hotels to come, and as the armory nears completion, there will be more need for rooms,” he said. “As more hotels come to town we are just doing this to be prepared.”
Calls to Luxury Inn's management were not returned.
Rutledge told Council members he expected city staff to propose a rate of 5 percent tax of the cost of the room. Customers would also pay sales tax. An estimate of how much the hotel tax could raise was not readily available.
He asked Council members if they had suggestions for a use for the proposed hotel tax, and Jay Adams and Mayor Jeff Landrith agreed the funds could be used to build a ballpark. City Council has brought bond package proposals containing baseball park plans to voters in recent years, and both were shot down. City officials have agreed the existing ballpark is inadequate, and the odor and spray from the nearby city wastewater treatment plant is an issue.
Rutledge said officials might consider several uses, including economic development.
Neighboring cities take differing approaches:
*Oklahoma City, which surrounds Mustang, charges a 5.5 percent hotel tax. It is split between three interests — four-elevenths go to promoting conventions and tourism, six-elevenths go toward fairgrounds improvements and one-eleventh supports events recommended by the Oklahoma City Convention and Visitors Commission to boost the local economy.
*Yukon levies a 5-percent hotel tax dedicated for economic development, convention, tourism and parks and recreation.
uMoore charges a 5-percent hotel tax, unless the rent is less than $3 per day. All revenue goes toward parks and recreation facilities.
*Edmond and Norman both levy a 4-percent hotel tax, unless rent is less than $3 per day, and revenue is used to support conventions and tourism.
*Midwest City charges a 5-percent hotel tax, unless the rent is less than $4 per day. Revenue is divided between three beneficiaries — 56 percent goes toward fostering economic development and tourism, 14 percent is used for parks and recreation facilities and activities and 30 percent maintains the Midwest City Welcome Center.
*El Reno charges a 4.5-percent tax — 60 percent goes to building projects related to tourism and 40 percent is earmarked for tourism promotion.