Venue Tax Information

This Nov. 3rd election, Borger residents will see more than political candidates on their ballot; Proposition A will present the option to vote for or against a Venue Tax to support the Aluminum Dome Project.* 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. 

๐Ÿ‘‰Things a Venue Tax does:
๐Ÿ”ตA 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.
๐Ÿ”ตA Venue Tax supports an approved designated Venue Project (in Borger's case this is the Dome).
๐Ÿ”ตA 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.

๐Ÿ‘‰Things a Venue Tax does NOT do:
๐Ÿ”ต A Venue Tax does not raise property taxes.

๐Ÿ‘‰Who pays the Venue Tax?
๐Ÿ”ตA 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.

๐Ÿค”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.

๐Ÿค”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.

๐Ÿค” 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.

๐Ÿค”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.

๐Ÿค”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.
Pages from Venue Tax Election Information (002)
Pages from Venue Tax Election Information (002)-2