STRATEGIC PRIORITY: Growing
AGENDA DATE: March 26, 2025
COUNCIL DISTRICT(S): Citywide
DEPARTMENT: Department of Convention and Event Services
EXECUTIVE: Robin Bentley
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SUBJECT
Title
An ordinance amending Chapter 44, “Taxation,” of the Dallas City Code by amending Section 44-35 to provide the authorized uses of revenue from the local Hotel Occupancy Tax to the Texas tax code statutory limit - Financing: No cost consideration to the City
Body
BACKGROUND
Subsection (c), of Section 44-35,” “Levy; Amount; Disposition of Revenue,” of Article V, “Hotel Occupancy Tax,” of Chapter 44, “Taxation,” of the Dallas City Code will be amended to reflect the following disposition of revenues for five years from October 1, 2020 through September 30, 2025:
(c) Disposition of revenues collected from the seven percent tax must be as follows:
1. 4.718 percent must be paid prior to any other dispositions of revenue to:
a. the acquisition of sites for and the constructing, improving, enlarging, equipping, repairing, operating, and maintaining of the convention center complex or visitor centers, or both; or
b. pledging payment of bonds as authorized by Chapter 1504 of the Texas Government Code, as amended.
2. 1.232 percent to advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the city;
3. 1.050 percent to:
a. the encouragement, promotion, improvement, and application of the arts, including instrumental and vocal music, dance, drama, folk art, creative writing, architecture, design and allied fields, painting, sculpture, photography, graphic and craft arts, motion pictures, radio, television, tape and sound recording, and other arts related to the presentation, performance, execution, and exhibition of these major art forms; and
b. historical restoration and preservation projects to encourage tourists and convention delegates to visit preserved historic sites or museums:
1) at or in the immediate vicinity of convention center facilities or visitor information centers; or
2) located elsewhere in the municipality or its vicinity that would be frequented by tourists and convention delegates.
Amendments to this ordinance address public, staff and City Council concerns about the distribution of Hotel Occupancy Tax among allowable uses under the Texas Tax Code 351.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
The City Council was briefed on the VisitDallas Amended and Re-stated Contract on October 16, 2019.
On November 13, 2019, the City Council authorized an amended and restated contract with the DCVB, addressing audit recommendations from the January 4, 2019 released Audit of VisitDallas Report No. A19-006 drafted by the Office of the City Auditor by Resolution No. 19-1802.
The City Council was briefed on a proposed five-year renewal contract with DCVB for a term beginning October 1, 2020 through September 30, 2025, on May 20, 2020.
On June 10, 2020, the City Council authorized amendments to Chapter 44 - Section 44-35 that changed the distribution percentages of local Hotel Occupancy Tax by Resolution No. 20-0937.
The Government Performance and Financial Management Committee was briefed by memorandum on February 25, 2025. <https://dallascityhall.com/government/citymanager/Documents/Council%20Materials/O.%20HOT.pdf>
FISCAL INFORMATION
No cost consideration to the City.