Venue Tax Information
On the Nov. 3rd 2020 election, Borger residents saw more than political candidates on their ballot; Proposition A presented the option to vote for or against a Venue Tax to support the Aluminum Dome Project.* Proposition A passed and plans for the Aluminum Dome project are slated for completion in Jan. 2022. Learn what a Venue Tax is here:
What is a Venue Tax? A Venue Tax is a 2% Hotel Occupancy Tax added to the bill on a hotel stay or other short-term rental; like the existing Hotel Occupancy Tax, it is added onto a traveler’s hotel bill and collected by the hotel then paid to the City. The existing Hotel Occupancy Tax (HOT) was set at 7% in 2003, and State law restricts the use of HOT money to projects and expenses related to tourism. A Venue Tax must be approved by voters and dedicated to the support of an approved Venue Project — for Borger residents that is the Aluminum Dome Project.
👉Things a Venue Tax does:
🔵A Venue Tax adds 2% to existing Hotel Occupancy Tax (the existing Hotel Occupancy Tax rate is 7%) on the bill of a hotel stay or other short-term rental.
🔵A Venue Tax supports an approved designated Venue Project (in Borger's case this is the Dome).
🔵A Venue Tax presents residents the option to vote for or against a tax that will be paid by travelers/anyone who stays in a hotel in Borger.
👉Things a Venue Tax does NOT do:
🔵 A Venue Tax does not raise property taxes.
👉Who pays the Venue Tax?
🔵A Venue Tax is paid by travelers who stay in a hotel or other short term rental (think Air B&B). Like existing Hotel Occupancy Tax, a Venue Tax is added onto a traveler’s hotel bill and collected by the hotel then paid to the City.
🤔Why does the ballot language say the Venue Project will use property tax?
~Like any debt issuance the City makes property tax must be used as collateral- in this case, 3% of our existing property tax revenue will be used as collateral for the dome.
🤔So does this mean residents will pay more taxes for the Dome project if the Venue Tax is enacted?
~No, it means EXISTING property tax revenue has to be used as collateral. The project will NOT be funded with a property tax increase.
🤔 How much money is the Venue Tax expected to generate?
~Based on historical Hotel Occupancy Tax Collection, the City estimates the Venue Tax will generate about $100,000 per year.
🤔Why can't this money be used on something else, like street repairs or other City problems?
~A Venue Tax is restricted by State Law as to what it can be used for (approved venue projects) and a civic complex is one of the allowable expenses. Hotel Occupancy funds are also restricted and can only be used for tourism-based projects.
🤔What does voting on the Venue Tax do?
A YES vote enacts the Venue Tax to support the Dome Project. A NO vote rejects the Venue Tax.
*The Venue Tax supports five total funding sources and is not a referendum on the project itself, but instead a method for funding a portion of the project. The project financing plan details all five sources and can be found here.