The Grand Island City Council will consider raising the city’s hotel occupation tax during its meeting Tuesday night.
The proposal would double the tax from two percent to four percent. The tax is paid by hotel visitors, not local residents, and city leaders say the additional revenue would help cover roughly $11 million in deferred maintenance and upgrades at the Heartland Events Center.
City officials estimate the increase would add about $2.25 to the total cost of a $100 hotel stay.
The council had previously delayed the tax increase while developing a funding plan for livestock shows at Fonner Park. A separate agenda item Tuesday includes a vote to use economic development funds to support those events.
If approved, the higher hotel occupation tax would take effect May 1.
A name change is pending, as BigIron Auctions was recently announced as naming rights sponsor for the Heartland Events Center. A city spokesman said the new name has not yet taken effect.
The funds would pay for needed improvements including lighting, sound, roofing, and ice rink upgrades.
