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Council approves three hotel/motel reimbursements and grants, discusses lodging tax allocation
Summary
Council approved reimbursements and grants from the hotel/motel lodging-tax pool, debated clarifying allocations to Pryor Public Schools, the Chamber and Main Street, and discussed pursuing unpaid lodging taxes and a possible lodging-tax increase targeted at nonresidents.
Pryor Creek — During the meeting councilors reviewed items funded by the hotel/motel (lodging) tax and approved three measures from that fund: a $29,636 reimbursement to Pryor Public Schools for eligible expenditures, a $5,000 reimbursement to Oklahoma Freedom Flight for an event July 27, 2024, and a $5,000 grant to the Pryor Area Chamber of Commerce for the Bluegrass and Chili Festival (Sept. 6–7, 2024).
Staff explained the lodging tax is a 5% tax on transient lodging and that historically the ordinance allocated percentages to the Chamber, Pryor Public Schools, Main Street and a small community pot. The council asked staff to reexamine allocation language and to meet with the hotel board to clarify how Airbnbs and RV park stays are captured in the ordinance going forward. Councilors also discussed collecting unpaid lodging taxes from operators who had not been remitting in prior years and noted those collections would boost the hotel/motel fund but, as currently structured, would not flow to the general fund without changes.
Members discussed the political and practical steps needed to increase lodging-related revenue without directly raising residents— sales tax: enforcing remittances, amending the lodging ordinance and, if necessary, placing a lodging-tax increase before voters. Council approved the three routine items and asked staff to bring a clarified allocation and potential ordinance language back for consideration.
