Bexar County court seeks state review for possible hotel tax increase to fund Freeman Coliseum upgrades and a new Spurs arena

Bexar County Commissioners Court on June 10 approved a resolution asking the Texas Comptroller of Public Accounts to review a proposed venue funding plan that would dedicate motor-vehicle rental and hotel-occupancy tax proceeds to two projects: renovation and redevelopment of the Freeman Coliseum grounds (including Frost Bank Center maintenance) and a proposed new downtown multipurpose arena that would be the future home of the San Antonio Spurs. The court’s action authorizes county staff to submit the resolution to the comptroller for the statutorily required review under Chapter 334 of the Texas Local Government Code.

The measure matters because it would not use property taxes or the county’s general fund; instead the proposal relies on visitor-based taxes. Under the draft framework approved for review the county would preserve the existing 5% motor-vehicle rental tax and raise the county hotel-occupancy tax from 1.75% to the maximum permitted 2%. County staff estimated the venue-tax increase would yield just short of $450 million toward the two projects; the Freeman/rodeo grounds program was discussed in the court record in the range of about $194 million and the Frost Bank Center maintenance needs were discussed at…