City of Lawrence

Administrative Policy

SUBJECT Transient Guest Tax Allocation

APPLIES TO City Manager’s Office and Finance Department

EFFECTIVE DATE January 1, 2008

REVISED DATE

APPROVED BY City Commission on August 7, 2007

TOTAL PAGES 1

POLICY NUMBER AP-55

1.0       Purpose

To establish a policy which governs the allocation of receipts from the transient guest tax fund to the guest tax reserve fund and the Sister Cities Program. The transient guest tax fund accounts for the 5% transient guest tax (as revised by ordinance # 6564 and approved in 2004 Operating and Capital Improvement Budget on August 19, 2003) received on the occupancy of hotels and motels in the City.  

2.0       Policy

Revenues from the transient guest tax shall be expended for purposes that the City Commission determines promotes, enhances, maintains or improves the tourism, visitor or convention business of the City. The City Commission hereby allocates a portion of the revenues received from the transient guest tax to the guest tax reserve fund and the Sister Cities Program as follows:

1. The guest tax reserve fund shall annually be allocated $150,000 of the transient guest tax receipts. The guest tax reserve fund may be expended for enhanced participation in economic development efforts related to events, downtown activities and promotions, other venues that generate sales tax and guest tax dollars for the community, tourism promotion and support services, City services for downtown beautification, support for the development of the National Heritage Area designation and other items to enhance the visitation industry.

2. The Sister Cities Program shall annually be allocated $12,000 of the transient guest tax receipts.