Topeka committee forwards proposal to raise transient guest tax to 8.5%

The Transient Guest Tax Committee on April 2 voted 2-0 to forward a charter ordinance to the full City Council that would raise the city's transient guest tax (TGT) from 7% to 8.5%, with the change scheduled to take effect Jan. 1, 2027.

Committee chair Michelle Hofer said the committee was advancing the rate question first and would return to decide how any additional revenue would be allocated if the Council approves the change. "So, I'd like to move this to an action item and vote to move it forward," Hofer said during the meeting.

Why it matters: The TGT is the city's principal targeted revenue for tourism and cultural projects. Under the current structure presented to the committee, the 7% base in 2025 generated about $2.9 million. That base is composed of a 5% base share plus add-ons: a 1% for Sunflower Soccer (sunset 2032) and a 1% that funds a set of downtown cultural sites (sunsets at the end of 2027). A recent carve-out already directs amounts above a 2025 Hotel Topeka baseline to the city to cover hotel-related costs; the proposal before Council would set the overall TGT at 8.5% in perpetuity.

Legal and procedural review: Braxton, speaking for the city's legal office, reviewed the existing ordinance and the proposed amendment, noting that existing contracts with Evergy Plaza, Jayhawk Theatre and Constitution Hall would remain in place through the end of 2027. "This proposal just takes it to an 8.5% and leaves it there in perpetuity," Braxton said, adding that amounts collected above a 2025 base at Hotel Topeka (approximately $150,000 in 2025) would still be captured by the city to repay prior investments.

Committee vote and next steps: The three-member committee conducted two procedural motions: first to move the charter ordinance from non-action to an action item, then to recommend the charter ordinance to the governing body. Both measures carried on voice votes with two members voting in favor and one member absent. The committee chair said the ordinance is expected to appear on a City Council agenda in early May; if Council approves it, the 8.5% rate would begin Jan. 1, 2027 and the committee will reconvene to discuss allocations.

Context from grant recipients: Committee members heard annual updates from organizations that receive TGT-derived support. Grant Glenn, president of the Friends of the Free State Capitol, said Constitution Hall completed reconstruction and a new visitor center and will begin regular public hours immediately. "We are finally in a position to open the building to the public on a regular basis," Glenn said.

Joanne Morrell of the Jayhawk Theatre described progress on a planned $35 million restoration and a 100th-anniversary celebration scheduled for Aug. 22. An Evergy Plaza representative, Curt, said the ice-rink phase was nearing final design and targeted a Nov. 1 opening. TJ McDonald of Sunflower Sports Association said new field lighting and recent tournaments have produced out-of-town visitors and that the organization plans additional turf fields and a regional flag football event.

Sean Dixon, president of Visit Topeka, summarized marketing and direct-sales work intended to drive room nights and visitor spending. Dixon said recent events produced an estimated $7 million in direct visitor spending in the quarter and noted that a single wrestling event is worth roughly $2 million in direct visitor spending when it visits Topeka. "The wrestling event alone cost us more than $30,000 a year in incentives just to have that group here," Dixon said, adding that the office uses incentives and facility rentals to secure large, multi-day events.

What the ordinance would change and what it would not: The committee emphasized the current meeting considered only the rate change; how new revenue would be distributed would be the subject of future deliberations. Braxton reiterated that administrative allocations would continue to be handled by contract even if the charter ordinance changes the rate.

The committee adjourned after scheduling follow-up steps; the City Council is expected to consider the ordinance in May, after which the TGT Committee plans to reconvene to discuss expenditure priorities if the Council approves the rate change.