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Lakeway council defers vote on hotel-occupancy meeting incentive program after policy questions
Summary
Council reviewed an ordinance to create a hotel occupancy tax (HOT) meeting-incentive reimbursement program that would set aside $200,000 annually and reimburse hotels up to 25% for negotiated meeting incentives; council directed staff to revise language and return at the next regular meeting.
Lakeway city council on Feb. 18 reviewed an ordinance (Ordinance No. 2025-O2-18-O2) to establish a hotel occupancy tax group meeting incentive reimbursement program that would allow hotels to apply for HOT funds to support room discounts, transportation and other incentives aimed at attracting meetings to Lakeway.
The proposal would create a dedicated annual pool of $200,000 from HOT receipts and authorize reimbursement of eligible costs — characterized in the staff report as “a sweetener” hotels could use when negotiating with meeting planners. “This program basically is targeted at allowing our hotels to compete better against hotels from in other markets by competing harder by being able to provide incentives like room discounts and transportation,” Hotel Occupancy Tax Fund Coordinator Steve Wiley told council.
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