Urban County Council Passes Resolution on Hotel and Motel Tax Increase

Feb 18, 2016

Lexington’s Urban County Council approved a resolution Thursday that would raise the city’s hotel and motel tax rate from 6.5% to 8%. 

The increase, along with $60 million in state money and $10 million from the city, would help fund expansion of the Lexington Convention Center.  Officials with Lexington Center Corporation say the expansion is necessary to attract groups too large for the facility to currently accommodate.  Vice Mayor Steve Kay noted that the resolution’s passage was crucial. 

“I think it indicates that the council is serious about getting support from the state for the Civic Center project.  We see it as important for economic development,” he said.

The $60 million in state funding, which is the only capital project in Governor Bevin's budget, is pending approval, while the $10 million in city funding will likely be added in Mayor Gray’s April budget request.  Revenue from the hotel tax would pay for the state's contribution.