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Council debates lodging tax increase; staff to prepare options after mixed direction
Summary
Council discussed whether to put a lodging-tax increase on the 2026 ballot. Staff presented options and estimated $133,000 per percentage point; council was split—some members urged waiting to avoid risking the historic-preservation referral, while others favored capturing near-term revenue—so staff will prepare options and analyses for future council consideration.
Council discussed a proposal to increase Louisville’s lodging tax (currently 3%) and sought direction on whether to place such a question on the 2026 ballot.
City Manager Diana Langley noted the tax generates approximately $370,000 annually since 2003 and that each 1 percentage point would yield roughly $133,000 per year; staff flagged uses for recreational/cultural facilities and economic vitality or marketing. The chamber and cultural services representatives indicated interest in dedicating funds to tourism marketing and cultural services; Director Brandy Cummings noted museum and cultural programming needs.
Council members debated timing and risk: some members recommended delaying an increase until next year to avoid potentially jeopardizing the historic-preservation ballot question this year; others argued an increase could be timed to capture near-term events (for example Sundance-related visitors) and could fund marketing, cultural services or housing initiatives. Opinions diverged on whether lodging-tax revenue should support affordable housing or sustainability.
Given divergent views, staff will prepare options that include proposed percentages, projected revenues, and proposed spending allocations for council consideration at a future meeting; no ballot-ready measure was adopted at this session.
