Fort Worth voters will go to the polls in May to decide whether to impose a higher tax on visitors.
In January, City Council approved a resolution for putting the ballot measure in front of voters. The tax will primarily be used to fund the long-planned convention center expansion.
Voters supporting the measure will authorize the city of Fort Worth to increase the hotel occupancy tax rate to 17%. The extra money will mean that the city can put $9.5 million annually toward paying off the debt for the convention center’s expansion. It would also set the city up to pay for future tourism-related projects, including incentivizing a new hotel on Commerce Street and funding improvements to the Will Rogers Memorial Center.
A 2% rate increase will put the city at the upper limit of the Hotel Occupancy Tax allowed by state law, Mike Crum, director of Fort Worth’s public events department, previously told council members. Houston and Austin both have 17% hotel occupancy tax rates, Dallas’ rate is 15%.
The $701 million convention center renovation is split into two phases. The first includes building new kitchens, loading docks and straightening Commerce Street. In the second part of the project, the convention center’s familiar “flying saucer” section will be demolished, allowing the building to be expanded and modernized.
Funding for the first phase of construction is secured using a combination of $52 million in federal pandemic-era stimulus money and $43 million in debt, to be repaid through the city’s culture and tourism fund.
Hotel occupancy tax is the tax visitors to the city pay when they book hotel rooms. That tax is the primary source of revenue to the cultural and tourism fund. The city will need to borrow more money to fund the rest of the expansion.
Several organizations support Proposition A. Bob Jameson, CEO of Visit Fort Worth, said after tourism dollars took a hit during the pandemic, the extra tax is necessary to keep the project moving beyond the first half of the work. Visit Fort Worth, which promotes the city’s tourism industry, is financed through the culture and tourism fund.
“Conventions and conferences are a way of introducing the city to people in all sorts of different industries and businesses,” Jameson said. “I think it’s important not to let the opportunity slip through our fingers.”
A group called Together Fort Worth was recently formed to support Proposition A. In a press release, the group says the tax increase and resulting convention center project will create jobs and contribute to Fort Worth’s economy.
Attorney Brian Newby is chair of the organization, which is also supported by community leaders, including Pam Minick of the National Cowgirl Museum and Hall of Fame and former council member Sal Espino.
“With phase 2 Convention Center improvements, Fort Worth will be home to more conventions and meetings, which helps generate good local jobs and economic opportunities, without increasing our property taxes … Fort Worth wins when visitors spend,” Newby said in the release.
How do cities take on debt?
Cities can take on different kinds of debt depending on its purpose, according to the Texas comptroller. Some require voter approval, such as bond debt. Other types of debt, such as certificates of obligation, allow the city to issue debt quickly without voter approval. Both types of debt allow cities to pay for capital projects over time.
Cities often use debt to fund major construction projects through bond elections — voters approved a $560 million bond in May 2022. And the city paid for its portion of Dickies Arena’s cost through Special Tax Revenue Bonds — a type of debt voters approved in November 2014.
How do cities take on debt?
Cities can take on different kinds of debt depending on its purpose, according to the Texas comptroller. Some require voter approval, such as bond debt. Other types of debt, such as certificates of obligation, allow the city to issue debt quickly without voter approval. Both types of debt allow cities to pay for capital projects over time.
Cities often use debt to fund major construction projects through bond elections — voters approved a $560 million bond in May 2022. And the city paid for its portion of Dickies Arena’s cost through Special Tax Revenue Bonds — a type of debt voters approved in November 2014.
Visitors to the Fort Worth Convention Center said they enjoyed the location and amenities surrounding the convention center. Hundreds of people flocked to Fort Worth for the Texas Water Conference the week of April 8. Lindy Eppinger, who came from Phoenix, Arizona, to attend, said she liked the convention center facilities and noted attendance at the Fort Worth conference broke records.
Bradley Wilhelm, with Corix Utilities, said he likes the location of the convention center. It was his first time coming to the building for a conference, but he’s been there before for volleyball tournaments. The proximity to restaurants is just enough to make him work up an appetite.
Both Eppinger and Wilhelm said hotel occupancy taxes aren’t on their minds when deciding whether to go to a conference.
“If you gotta stay somewhere, you gotta stay somewhere.” Wilhelm said.
Early voting will begin April 22 and end April 30. Election Day is Saturday May 4, for more information about voting locations and to review a sample ballot, go here.
Rachel Behrndt is a government accountability reporter for the Fort Worth Report. Contact her at rachel.behrndt@fortworthreport.org or via X.
This article first appeared on Fort Worth Report and is republished here under a Creative Commons license.