If this proposal gets state approval, it would clear the way for the county to hold a public vote in November on increasing the hotel occupancy tax from 1.75% to 2%.
The gist
The increased HOT—which would raise an estimated $450 million—would fund the renovation of the Freeman Coliseum and the development of a new multi-purpose downtown arena. The proposition would also authorize the county to use funds from the existing 5% motor vehicle rental tax.
Though the HOT signals support for the new Spurs arena, county officials stressed that the funds will be used for county priorities, such as the maintenance of the Frost Bank Center and the expansion of the rodeo before being used to fund a new arena.
Prior to voting, Precinct 2 Commissioner Justin Rodriguez reiterated that the vote was not a final decision, but rather was meant to maintain the potential for a November election. He also noted that, if approved, the comptroller would have around 30 days to make a decision, which would allow county officials to receive feedback from the community.
“This is not a final vote. This essentially keeps the train running down tracks,” Rodriguez said. “This gives the comptroller the authority to review [the request and] make sure everything is in compliance.”
Precinct 3 Commissioner Grant Moody opposed the proposed tax increase, stating that the other avenues for a new Spurs arena, such as choosing a location in Northeast San Antonio, are not being properly explored before any decisions are made in regards to raising taxes.
“The bottom line is [that] I support the rodeo expansion plan,” Moody said. “I've been clear about that, and I support the Spurs and the general framework of a deal on a new arena, but I can't support the venue tax increase that is being proposed here today.”
During the discussion, Judge Peter Sakai reminded the court that this vote is in line with the county’s interest in exploring funding options for county properties. Additionally, Sakai said the HOT and the motor vehicle rental tax is a tax on tourists and not residents. He also noted that the county would need to wait for the new mayor and city council to come to the table and provide their point of view towards Project Marvel.
“We have made a commitment that we want to make sure that the county facilities, the eastside community, is included according to statute, because that tax can only be used for certain things, and if there's anything left over, then we will see what we can do to keep the Spurs in San Antonio,” Sakai said.
The vote passed 4-1, with Moody voting against the motion.
Stay tuned
If approved by the comptroller, the county will have until Aug. 18 to call for a November election.
