Knoxville City Council Votes on Proposed Hotel and Motel Tax Increase to Benefit Local Infrastructure and Tourism

KNOXVILLE CITY COUNCIL CONSIDERS HOTEL AND MOTEL TAX INCREASE

In an exciting turn of events for the city of Knoxville, the City Council members gathered recently and voted in favor of a proposal that could increase the current hotel and motel tax rate by a solid 1%. If all goes well in the upcoming second reading, the tax rate will be set at a total of 4%. Sounds like a small change, right? But don’t underestimate the impact!

Money Matters

City leaders are optimistic that this increase could usher in around $2.2 million into Knoxville’s budget based on last year’s revenue reports. That’s some serious cash, and it has potential to be used for crucial projects like maintaining local infrastructure and covering assorted tourism-related expenses. Originally, this money was strictly earmarked for paying down debts tied to the construction of the much-loved Knoxville Civic Auditorium and Coliseum.

Age Brings Challenges

As luck would have it, the civic center is not getting any younger. At a ripe 64 years old, the auditorium is calling out for some significant repairs. Michael Murray, the owner of the Knoxville Ice Bears, threw light on how essential it is to keep this historic building well-maintained. He spoke candidly about the mounting costs involved, noting that electrical work alone is just scratching the surface of the repair needs.

In fact, the Ice Bears recently faced challenges in December 2023, having to reschedule games due to some pesky mechanical issues in the facility. It’s a clear sign that timely upgrades are imperative.

Protecting Our Facilities

Andrew Roberto, a member of the Knoxville City Council, chimed in on the importance of maintaining the city’s infrastructure. “All this talk about maintenance — we have these great facilities that we’ve all used and had great experiences with, but if we don’t keep up our infrastructure, we won’t be able to keep the revenue flowing in,” he stated. It’s a valid point, and one that resonates with many residents who cherish their experiences at these venues.

Tourism is Key

In 2023 alone, the Tennessee Department of Revenue reported that tourists spent nearly $400 million on accommodations within Knox County. If the proposal clears the second reading, the new 4% tax rate will become a permanent addition to the existing tax framework, providing the city with more resources to boost tourism even further.

Kim Bumpas from Visit Knoxville enthusiastically pitched in, saying, “We’re creating a bucket of money that can be used for tourism-related infrastructure. This can really enhance World’s Fair Park, the convention center, or the coliseum. I think that’s a fantastic idea!”

What’s Next?

So, what’s next for this proposal? The Knoxville City Council is set to make a final decision regarding this tax increase in their next session on November 26. It’s an important date for anyone who cares about the future of Knoxville’s beloved facilities and the overall tourism landscape.

As the countdown to that crucial meeting continues, both residents and tourists alike wait with bated breath, hopeful that this proposal will see the light of day and bring in the much-needed funds to keep Knoxville shining bright!