**Knoxville City Council to Consider Hotel and Motel Tax Increase**
KNOXVILLE, Tenn. (WVLT) – The Knoxville City Council is set to discuss a potential tax increase for hotels and motels during its meeting on November 12.
On the agenda for Tuesday night is a proposal to amend the city’s hotel occupancy tax, which is currently set at 3%. This tax, in place since 2000, is levied on guests staying at hotels and motels within city limits, with the revenue used to make debt service payments on the Knoxville Convention Center.
The proposed amendment seeks to raise the occupancy tax by one percent, bringing it to 4%. Additionally, it would remove the current restriction that limits the use of the tax revenue to paying off the Convention Center’s debt. Instead, the funds would be directed towards promoting tourism and supporting tourism-related projects, including repairs and improvements at the Knoxville Civic Auditorium and Convention Center, World’s Fair Park, and other tourist attractions.
City officials reported that in the 2023-2024 fiscal year, the city generated approximately $6.7 million from the existing Hotel/Motel Tax Ordinance. Had the proposed increase been in effect, it would have brought in an additional $2.2 million in revenue.
If approved, the tax increase would take effect on January 1, 2025. However, the proposal must first pass both its initial and second readings before the change can be implemented.
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Source: wvlt.tv