Tulsa city councilors revisited the mayor’s tax increase proposal Wednesday but stuck only to the hotel guest tax portion — leaving a sales tax conversation for another day.
The council’s Urban and Economic Development Committee agreed to let voters decide whether to increase the hotel guest tax from 5% to 9.25% during an August election. Starting in February, city leaders will host a series of town halls so voters can learn more about the proposal.
The hotel guest tax funds maintenance and operations at the BOK Center and Arvest Convention Center. It also promotes tourism and helps bring major events to the city. If approved in August, the increased tax rate on hotels, motels and other short-term rentals would go into effect in October.
“The hotel guest tax rate hasn’t increased in 40 years, and this effort is about creating long-term support for tourism without placing a burden on Tulsa taxpayers,” Council Chair Karen Gilbert said in a statement.
The hotel guest tax increase was originally part of a larger proposal from Mayor Monroe Nichols, who also pitched increasing the city’s sales tax by .7% last fall. That would generate $80 million in new revenue each year, he said.
Councilors held off on advancing the proposal at the time, saying they would revisit the conversation in the new year — but so far it has yet to appear on an agenda.
Councilors acknowledged the proposed hotel guest tax increase is on par with other cities like Oklahoma City, which passed a similar increase in 2024 to fund tourism events and improvements to the convention center.
Councilor Phil Lakin Jr., who represents part of south Tulsa, said Oklahoma City is competing at a “different level” with “more money” than Tulsa.
“We are leaving opportunities on the table,” Lakin said. “We are already a smaller market than they are, so hopefully we will be able to communicate that to the voters.”
Nichols says he does not agree with proceeding with the hotel guest tax without including the sales tax increase on the ballot.
“It is critical that the sales tax measure be included in any revenue enhancement conversation,” Nichols told the Flyer in a statement.
“According to polling, 70 percent of Tulsans want the opportunity to vote on investing in the top issues facing our city, namely public safety and homelessness, and it is my belief that pressing forward with the hotel/motel tax without including a sales tax is a mistake,” he added.
News decisions at the Tulsa Flyer are made independently of our board members and financial supporters. Read more about our editorial independence policy here.
