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State and Local Government / Municipal Policy

Musings on the Hotel Tax Vote

By David Stokes on Nov 4, 2010

It may have been a very small issue, but some of the best news out of Tuesday’s election was the defeat of hotel taxes in Clayton, Richmond Heights, and St. Peters. Hotels in Clayton and Richmond Heights already have two taxes imposed on room stays — on top of the local sales tax. These are the same two taxes imposed on hotel rooms throughout the city and county. The reasons why I think the St. Louis hotel tax pool works are described in this article.

I applaud the citizens of these three cities for rejecting the proposed taxes. It would have been so easy for the majority to vote to increase somebody else’s taxes — that somebody being any unknown travelers staying in the hotel. Whatever the reason for the defeat, this is good news for fiscal discipline. Now these cities may have to make the tough budget choices that other cities are making, rather than just raising taxes and moving budget items around so they fit under the heading of “tourism.”

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About the author

David Stokes

Director of Municipal Policy

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