HALF OF DENVER HO­TELS BACK RISE IN TOURISM TAX

The Denver Post - - BUSINESS - — Jon Mur­ray, The Denver Post

Rep­re­sen­ta­tives of just over half of el­i­gi­ble ho­tels signed a pe­ti­tion to ini­ti­ate an ad­di­tional 1 per­cent tax on stays that would help pay for a rooftop ex­pan­sion of the Colorado Con­ven­tion Cen­ter.

The 51 per­cent sup­port re­ceived on a pe­ti­tion sub­mit­ted to Denver fi­nance of­fi­cials sur­passed a 30 per­cent thresh­old re­quired to ini­ti­ate the new kind of tourism tax un­der an or­di­nance passed by the City Coun­cil in June. On Wed­nes­day, a coun­cil com­mit­tee ad­vanced a pro­posal to cre­ate and form the board for a city­wide Tourism Im­prove­ment District, which would ap­ply only to the 116 ho­tels that have 50 or more rooms.

A vote by the full coun­cil is set for Aug. 28. Ap­proval would lead to the set­ting of a Nov. 7 spe­cial elec­tion for the af­fected ho­tels to ap­prove the tax, which would make the ef­fec­tive tax paid by guests of those ho­tels 15.75 per­cent.

The new tax is ex­pected to gen­er­ate $8.7 mil­lion in the first year. Of that, $3.8 mil­lion would go to a mul­ti­pronged plan to cover cost gaps in a $233 mil­lion rooftop ex­pan­sion project for the con­ven­tion cen­ter. The rest would sup­ple­ment Visit Denver’s mar­ket­ing ef­forts and main­te­nance projects in the con­ven­tion cen­ter.

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