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Irving staff outline proposed hotel-occupancy tax reallocation as special carve-out sunsets
Summary
Staff presented a proposed ordinance to amend Irving’s hotel-occupancy tax allocations after a special legislative carve-out sunsets; recommendation would roll the arts allocation back to the state cap and direct the prior $1.6 million differential mainly to the convention center/CVB and museums.
IRVING, Texas — City and Irving Convention & Visitors Bureau officials on Jan. 29 presented a proposed ordinance to revise how the local 9% portion of hotel-occupancy tax is distributed, explaining the changes ahead of a statutory sunset that alters a past carve-out.
Maura, executive director of the Irving Convention & Visitors Bureau, summarized the history: hotel tax totals 15% statewide (6% state, 9% local), and earlier special legislation allowed an additional allocation (about $1.6 million) to support the Irving Arts Center after its debt service. That carve-out is set to sunset Sept. 1. Maura told the council the tax revenue itself continues to be collected but the amount that may be allocated to the arts will revert to the state law cap.
"Our recommendation is basically to take the million 6 differential, put 1000000 of it to the convention center and convention visitors bureau, and then take the 600 to the museums," Maura said, describing the staff recommendation to redirect those funds following the sunset.
Maura explained the proposed allocation would preserve 2% for the city's voter-approved entertainment obligation, dedicate funds for convention center debt and operations, allocate the state-maximum portion to arts (5%), and direct remaining excess convention center debt service to capital improvements for the facility. She also reviewed how prior reallocations and debt-service arrangements had evolved since the 1970s and noted the proposed changes were reflected in the current and next fiscal-year budgets.
Council asked clarifying questions about whether total hotel tax receipts would cease (they would not) and about the mechanics of the reallocation. Staff said the change affects distribution of the existing tax but does not stop the city from collecting hotel-occupancy tax.
No formal vote was taken at the work session; the matter was presented for council consideration and will appear on the regular agenda for action consistent with required ordinances and hearings.
