The vote passed unanimously.
Hotel occupancy tax revenue is used to promote tourism and the hotel industry in Lakeway, according to the city. As a result, certain organizations and businesses that boost the area's tourism can request hotel occupancy tax funds from the council.
Council Member Louis Mastrangelo said he wanted to clarify that it is not Lakeway property tax money going towards Special Olympics Texas.
“I know some people were confused about that last year,” he said. “Hotel taxes come from hotel stays in our local hotels and resorts.”
According to the Texas Comptroller’s office, “Hotel owners, operators or managers must collect state hotel occupancy tax from their guests who rent a room or space in a hotel costing $15 or more each day. The tax applies not only to hotels and motels, but also to bed and breakfasts, condominiums, apartments and houses. Local hotel taxes apply to sleeping rooms costing $2 or more each day.”
Lakeway collects just under $1 million in hotel occupancy tax revenue every year, Interim City Manager Joseph Molis said.
“This is a great way to spend the money,” Mastrangelo said.
Special Olympics Texas also requested, and received, $100,000 from both Bee Cave and Lakeway last year in hotel occupancy funds for their winter games in February 2022, according to the city.
In addition, Special Olympics Texas will request $200,000 in hotel occupancy funds from Bee Cave City Council during their Nov. 8 meeting.
Every year, after the event ends, the organization requesting hotel occupancy tax funds must complete a post funding analysis. During last year’s Special Olympics Texas Winter Games, attendees used approximately 800 hotel rooms for a total of $114,567, according to Lakeway city documents; of that total, 25% were stays in Lakeway and 75% were stays in Bee Cave.
Mayor Pro Tem Gretchen Vance said she wanted to see hotel occupancy more equally distributed between Lakeway and Bee Cave this year.
“This is a discrepancy, and I would like to see it addressed,” she said.
Chad Eason, Special Olympics Texas' senior director of competitions and games, spoke on behalf of the organization during the meeting. He said February’s winter game attendees did not utilize Lakeway Resort and Spa or Springhill Suites Lakeway. However, he said they are anticipating over 1,000 attendees for the event in 2023, so they would have to use both of those locations and give Lakeway hotels more business, he said.
“We want to thank you guys for the funding from last year and helping us put on the competition,” Eason said. “It was our inaugural event and we couldn’t have had a better experience.”
The three-day event for the winter games will be Feb. 17-19. The games will take place at Lake Travis Middle School, Bee Cave Middle School, Hill Country Indoor and Star Hill Ranch, according to Lakeway city documents. The event will include floorball, powerlifting and volleyball.
