City Council Approves Hotel/Motel Tax Special Election for November 18
On August 26, Councilmembers approved ordinance changes and a November 18 Special Election related to Midwest City’s Hotel/Motel Tax. If approved by voters, these changes mean that Midwest City’s existing hotel/motel tax would increase from 5% to 9.25%. This increase is not related to any tax paid by current residents. By ordinance, Midwest City residents are already exempt from paying hotel/motel tax when staying overnight within city limits.
Midwest City’s Hotel/Motel Tax is collected from travelers who stay in our community for work or personal trips. The tax is also collected on stays at home-sharing properties advertised through apps and online marketplaces. If approved, the new hotel/motel tax rate of 9.25% would be comparable to the rate charged by larger metro communities, including Oklahoma City (9.25%), Moore (8%) and Norman (8%).
The Council-approved ordinance relating to the hotel/motel tax also modifies how these collections can be used. Previously, portions of the collected hotel/motel tax were dedicated to the Midwest City Welcome Center at 7200 SE 29th St., now operated by the State of Oklahoma. An existing restriction in city ordinance exempts other governmental agencies from receiving proceeds from the tax.
Instead, hotel/motel tax collections will now be dedicated to economic development (45%), and to the promotion of recreational activities and park facility improvements throughout the city (55%). This means that the funds will have a more direct impact on growth and reinvestment in the community.
Currently, the 5% Hotel/Motel Tax brings in approximately $680,000 per year. Increasing the tax to 9.25% would bring in an estimated $1.2 million per year, meaning $540,000 for economic development and $660,000 for parks.
Midwest City residents can vote on the issue during the November 18 Special Election. Public meetings and informational presentations will be scheduled for voters to attend and ask questions prior to the hotel/motel tax special election. Once scheduled, updates on these meetings and presentations will be available on MidwestCityOK.org and posted to the official City of Midwest City social accounts.
