Council might levy hotel tax

May 14, 2008 02:13 pm

— By Leia Jobe
reporter2@trcle.com

The Joshua City Council on Thursday might levy a hotel occupancy tax of 7 percent in preparation for the city’s first hotel, which could open within a year.
Owners of the hotel are in the process of obtaining preliminary platting and zoning change approval, City Secretary Mary Beth Thomas said.
“When a hotel comes into a city, you’re actually allowed to get a tax on the price of each room, but you’re restricted to what you can use that money for,” Thomas said.
The hotel, developed by Nick Patel of Irving, would be located on what is now a vacant lot on 501 South Broadway.
Thomas said the city has never considered a hotel occupancy tax before because they have never had a hotel.
The city has no plans for a second hotel but wants to prepare for possible future economic development, Thomas said.
As a home-rule city, Joshua is allowed to levy a tax of up to 7 percent on all hotel, motel, bed and breakfast and tourist lodge rooms in the city, according to local government code.
Revenue may not be used for city government or general revenue purposes.
The revenue “may be used only to promote tourism and the convention and hotel industry,” according to the ordinance. Use is limited to the acquisition of sites for visitor information or convention centers, furnishing of those facilities, advertising to attract tourists, historical restoration and encouraging the arts.
The Joshua City Councilwill also consider other platting, zoning variance requests for properties in the 500 block of Cooper Lane, 400 block of North Broadway, 700 block of North Main and Block 1 of Rumfield Plaza.
The council meets at 7:30 p.m. in the city council chambers at 101 S. Main St. in Joshua. A workshop session to review staff reports from city offices will begin at 6:30 p.m.