Victoria City Council to have less hotel tax money to distribute

Sara  Sneath By Sara Sneath

July 13, 2014 at 2:13 a.m.

The amount of financial support the city offers to arts and historical restoration programs and sporting events through hotel occupancy tax funds is expected to take a cut in 2014.

The City Council will determine the size of the cut Tuesday. Last year, the city designated $562,230 to be distributed to promote tourism, convention and hotel industries.

The overall fund size was $1.8 million in 2013. It is expected to be cut to between $1.65 million to $1.75 million this year, Finance Director Gilbert Reyna told the Advocate. The council is restricted by law on how much of the hotel tax it can distribute to specific groups. The primary purpose of the money is to bring in overnight visitors to Victoria.

The hotel occupancy tax funds are collected from overnight hotel guests, bed and breakfasts and other lodging facilities.

"Each year, the council decides how much money to put into that program, and then the money is distributed to various different applicants," said City Attorney Thomas Gwosdz.

The deadline to submit requests for hotel occupancy tax funds was June 30.



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