Council approves substitute ordinance to raise hotel‑motel tax to 4% for tourism development

The Memphis City Council on April 8 approved a substitute ordinance (No. 5937) that increases the hotel‑motel occupancy tax to 4% and clarifies permissible uses of the revenue as restricted to tourism and tourism development.

Chief Gibson, appearing at the request of the sponsoring member, told the council the substitute ordinance adds language that "clarifies that one of the permissible uses for this particular increase is limited to tourism and tourism development" and that the added language tracks the enabling statute.

Council discussion focused on the gravity of adding fees and the anticipated uses. Councilman Carlo (remarks recorded during the item) said members weigh such votes carefully and described the increase as "a unique opportunity" to add a revenue stream the city could use to support investments—he cited professional sports and major public‑private investments as examples of projects that state and local governments often support with tourism dollars.

Vote and recusals: the ordinance passed on third and final reading. The recorded vote was: Carlisle — yes; Cooper‑Sutton — yes; Easter Thomas — yes; Ford — yes; Logan — yes; Smiley — yes; Espinosa — yes; Warren — yes; Swearington Washington — yes; Walker — yes; Chairman Canali — yes. Councilmember White recused from the vote. The vice chair moved the item and Councilmember Warren seconded.

Effective use: the substitute ordinance explicitly limits one permissible use of the increased revenue to tourism and tourism development, per the administration's sponsorship and the chief's explanation. No further amendments were adopted at the meeting.

Ending: the ordinance passed with one recusal and will appear in the city code as amended language clarifying eligible tourism‑related uses of the tax revenue.