State Rep. Introduces Hotel Tax Bill As Potential Revenue Generator For Rupp Project
State Rep. Jesse Crenshaw says Lexington should be allowed to raise taxes on hotel rooms to help fund the proposed renovation of Rupp Arena.
House Bill 544, which Crenshaw filed Wednesday, would grant Lexington authority to up the tax on hotel rooms by 2.5 percent.
"I think it's a good idea because of the fact there is a need for the increase and that will assist in economic development for the area," Crenshaw says.
Costs for the Rupp project are estimated at $310 million. A financing plan has yet to be released.
Fayette County currently taxes hotel and motel rooms at 4 percent, but merged city-county governments can up that to 6 percent. If passed, the bill would increase that amount up to 8.5 percent.