Ft Worth Times

City Council will conduct a special called meeting at 5:45 p.m. Tuesday, Jan. 9, at City Hall, 200 Texas St., to discuss designating the Fort Worth Convention Center renovation project as a “venue” under state law and seeking voter approval for a 2% additional hotel occupancy tax, also known as HOT.

HOT is paid by those renting a hotel room.

Construction costs for the long-planned Fort Worth Convention Center renovation have increased due to inflation and other factors. In response, City management has proposed going to the voters to seek approval for additional HOT funds.

The 2% HOT would be in addition to the current 15% general state and local HOT. If approved by voters, the 2% increase would put the total HOT at 17%, which is the current rate in Houston and Austin. Within the current 15% HOT collection or the proposed 17%, 6% goes to the State of Texas.

The 2% HOT is projected to generate $10 million per year, which would be used to support revenue bonds for the Convention Center renovation.

A designated venue cannot be supported by property tax or property tax-backed bonds.

City Council’s action on Tuesday is only the first step to start the process. The Texas Comptroller would have to review the potential impact on state revenue. Following the Comptroller’s feedback, further action by the Council would be needed to call an election.

The agenda for the special called meeting will be formally posted on Friday, Jan. 5. 

Voters will have ultimate say on whether the venue designation and proposed HOT are approved.

Original source can be found here.