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Committee discusses hotel-motel tax allocations, Airbnb collection and asks council to seek Oklahoma Tax Commission assistance
Summary
Committee members discussed modernizing the city's hotel-motel tax ordinance to capture short-term rentals (Airbnb), reconsider allocations (particularly the school share), use geofencing data to target revenue opportunities, and requested a council resolution asking the Oklahoma Tax Commission (OTC) to collect the tax.
The Prior Creek Advisory Committee discussed broad changes to the city's hotel-motel tax ordinance, including whether to change the definition of "hotel-motel" to better capture short-term rentals, whether the current allocations remain appropriate, and whether the city should ask the Oklahoma Tax Commission to administer and collect the tax.
A committee member raised the question of why the city's definition of a hotel-motel requires three or more rooms, arguing that short-term rentals and single-room rentals should be treated the same way for tax purposes. Members discussed attorney guidance that the current three-room language may apply only to multiple rentable units on the same property rather than single-unit short-term rentals, creating a collection gap for platforms such as Airbnb.
"If I can interrupt. I also thought that that should apply to 3 bedroom rentals. But according to an attorney opinion that Courtney solicited," one member said, noting that the opinion indicated the current language applies only to three separate rentals on the same property.
The committee reviewed allocation of hotel-motel revenue under the current ordinance (a breakdown discussed at the meeting was roughly 40% to the Prior area chamber of commerce, 20% to Prior public schools, 10% to Main Street, and 30% to local organizations, with parts of that 30% earmarked for matching grants for sports facilities). Some members urged reconsidering the school allocation because local school finances are currently healthy and other community groups may have greater immediate need.
Mr. Majors, identified at the meeting as the Hotel-Motel board chairman, presented Placer AI visitation data showing high usage of local sports and festival facilities and argued the city is missing revenue opportunities from tournaments and visits. "In 2024, there were 35,100 visits to that facility," Majors said of one complex, and he recommended using data to better target funds to events and facilities that attract out-of-town visitors.
The committee also discussed moving collection to the Oklahoma Tax Commission so the state could use its enforcement mechanisms and integrate hotel-motel receipts with sales-tax reporting. A councilmember said he had already drafted a proposed resolution for council to request the OTC take over collection and that it would require a council resolution.
The committee voted to recommend that council adopt a resolution asking the Oklahoma Tax Commission to collect the hotel-motel tax; roll-call affirmations recorded included named yes votes on the motion. The committee discussed asking the Hotel-Motel board to review allocations and consider changes, and encouraged the board to take up questions about registration and enforcement for short-term rental operators.
The committee did not adopt ordinance text changes at the meeting; it referred allocation and ordinance drafting questions to the Hotel-Motel board and recommended the council pursue OTC collection.
Votes at a glance: the committee voted to recommend a council resolution asking the Oklahoma Tax Commission to collect the hotel-motel tax and affirmatively asked the Hotel-Motel board and staff to review the ordinance and allocations.
