Missouri City will begin a new policy for use of its hotel occupancy tax after City Council approved the guidelines April 4. City officials said funding from HOT taxes could help the city boost tourism.
Applicants—legal entities including nonprofits and event venues— can request HOT tax funds for tourism-related projects, including convention and visitor information centers, marketing the city, promoting the arts, historical restoration and preservation and signage for sites and attractions, according to city documents. Priority is given to applicants who can attract overnight visitors to Missouri City
“Now that we have this policy we’ll be able to market the community,” Missouri City City Manager Anthony Snipes said.
Since 2009, Missouri City has collected a 7 percent HOT tax from the city’s two hotels—La Quinta Inn & Suites and Hampton Inn & Suites—which are both located on Hwy. 6. HOT taxes are collected on room or space rentals in hotels that cost at least $15 per day, according to the Texas Comptroller of Public Accounts.
In total, Missouri City HOT taxes have generated $378,742 as of June 30, according to the city’s comprehensive annual financial report for fiscal year 2014-15. Joe Esch, Missouri City economic development director, said his office has no pending applications for use of the funds.
He and Snipes said Missouri City’s policy has no major differences from the state code on HOT taxes. However, the state HOT tax rate is 6 percent.
“We felt it was important that we had a policy in place that aligns with state guidelines,” Snipes said.
City staff worked on the policy since December, when Hampton Inn requested up to $3,000 on behalf of the Elkins High School Band and Guard Booster Club for costs related to a February event at the hotel. Snipes said at the April 4 council meeting that the request was approved on a one-time basis.