MOTEL OCCUPANCY TAX FUND
The purpose of this fund is to account for resources generated from the local hotel/motel occupancy tax, which collects at the rate of 7% of the cost of a hotel room. It is the policy of the City of Lake Jackson to use and distribute the Hotel Occupancy Tax using two levels of funding to encourage tourism: The first level of funds (Level 1) assists the following organizations and events and is distributed on a percentage basis. The maximum level of funds allocated to Level 1 is $568,803 for FY 2021-2022. The maximum may be adjusted annually by the City Council, taking into consideration inflation and increases in operating expenditures. This year, the base amount was adjusted 4.2%. As much as 29% of Level 1 Funds to be used for promotion of tourism through: 1. Brazosport Convention & Visitors Council; and/or 2. Individual contractors who will advertise and promote the City; As much as 14% of Level 1 Funds to the Brazosport Fine Arts Council to be used for the promotion of the arts; As much as 21% of Level 1 Funds to the Museum of Natural Science at the Center for Arts and Sciences operated by the Brazosport Fine Arts Council to encourage visitations to museums; As much as 21% of Level 1 Funds to the Lake Jackson Historical Museum to encourage visitations to historical museums and sites; As much as 14% of Level 1 Funds to be used to promote Festival of Lights and other types of festivals or events that promote tourism; As much as 1% of Level 1 Funds to be used to fund tourism-marketing material. The second level of funds (Level 2) is the remainder and residue of the Hotel Occupancy Tax the City collects and can be allocated for some other lawful method of advertising the City or encouraging tourism, including preservation of historical sites, promoting visitation through attraction of conventions, and encouraging visitations to museums. Requests for Level 2 funds are made to the Hotel Occupancy Tax (HOT) Committee assigned with the responsibility to recommend expenditures of Level 2 funds to the City Council. The HOT Committee is recommending that level 2 funds for FY 2021-22 be used to continue funding a regional marketing campaign to increase tourism to Lake Jackson.
FY 2021-2022 Adopted Budget - 304
