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Maricopa council adopts bed-tax policy directing hotel-motel tax revenue to arts and tourism
Summary
The Maricopa City Council approved a bed-tax policy Sept. 2 that designates the hotel-motel 'additional' tax receipts for arts and tourism initiatives, allocating 91% to event tourism (including Wild West Music Fest) and 9% to an arts grant program; council members asked for broader community engagement on long-term strategy.
The Maricopa City Council on Sept. 2 approved a bed-tax policy that directs receipts from the hotel-motel additional tax toward arts and tourism initiatives, with 91% earmarked for event tourism and 9% for an arts grant program.
Jennifer Brown, a city staff member who presented the policy, said the proposal aligns with strategic priorities the council adopted on May 6, 2025, and complies with state statute governing use of hotel-motel taxes. Brown said the city’s recommendation is to reinvest “the all those dollars that come in from visitors and reinvest them in getting more visitors to our community.” She also emphasized the policy is adjustable in future budget cycles.
Under the policy the council approved, the 5.5% ‘additional’ portion of the hotel-motel tax is designated for arts and tourism initiatives; the policy authorizes funding for the Wild West Music Fest in the current year and establishes an arts grant program. Brown told the council unused funds budgeted in a fiscal year will carry forward to subsequent years.
Councilmember Noor urged broader community engagement and suggested surveying residents and organizations about long-term priorities: “I personally would like to see us ... do a survey or some sort of question to the community about what they think we should do with the bed tax now that we know all of these options.” Vice Mayor Henry Wade and other members said they would include the topic in futures planning discussions.
The motion to adopt the policy was made by Vice Mayor Henry Wade, seconded by Councilmember Marsh; council voiced approval and the motion carried.
Ending: Council members said the city can revisit and change the policy over time as collections and community priorities evolve; staff will include bed-tax strategy in future planning discussions and the annual budget process.
