In Wichita Falls city leaders will consider raising the local hotel/motel tax in order to fund improvement projects, but the increase would have to get approval of voters—possibly in November.
The tax is paid by guests of hotels, motels and bed and breakfasts.
Both the city and the state collect taxes from the room charges.
The state rate is 6 percent and the city rate is 7 percent for a combined hotel/motel tax rate of 13 percent.
Deputy City Manager Jim Dockery will make a presentation to the city council proposing an increase to 9 percent for the city rate, making the total rate 15 percent on Tuesday.
Dockery said the hike would bring in an estimated $550,000 annually, which would be used to pay debt service for about $6 million in needed repairs and improvements to the MPEC and Memorial Auditorium.
Dockery said he believes this proposition will transfer more of the tax costs from the local taxpayer to hotel guests.
If the city council approves the increase and calls for an election, it would take place in November.