HOT Tax Committee appointed
During its Aug. 14 City Hall meeting, the Dripping Springs City Council approved the reappointment of the prevailing members of the Hotel Occupancy Tax Grant Program Application Review and Recommendation Committee for fiscal year 2018-2019, which began in mid-July.
The volunteer committee members are: Vicky Lewis, owner of Mazama Coffee Co. & Roastery; David Fralic, GM of Sleep Inn & Suites; Nick Dotin, owner of Local Dance Hall & Bar; and Ashley Sansalone, Whim Hospitality director of Sales & Marketing. They review grant applications along with City Administrator Michelle Fischer, City Secretary Andrea Cunningham, and City Treasurer Gina Gills.
“The City desires that committee members have a knowledge of the tourism industry in the City of Dripping Springs,” explained staff committee member City Secretary Andrea Cunningham.
“We seek to have representatives of the hotel industry with knowledge of who is purchasing overnight stays for activities or events in the City. Representatives from industries that typically involve overnight stays in the City such as wedding venues, event venues and those with direct contact with visitors of such events are also extremely helpful.”
Dripping Springs organizations and businesses may apply for financial assistance for their special events through a city grant program, which is allocated funds from a portion of the Local Hotel Occupancy Tax (HOT) revenue.
The applicants are reviewed by an informal committee appointed by the city council. The committee looks for evidence that the applicant’s expenditure or event will increase overnight stays targeting visitors outside a 100-mile radius of Dripping Springs.
The City encourages those wishing to participate as a committee member to contact Cunningham for consideration of appointment by the City Council.
With few exceptions, the City Ordinance for HOT levied is 7% of the price paid for a room for hotels in both the city and extraterritorial jurisdictions. The hotel operator is entitled to 1% of the HOT revenue collected for administrative costs, thereby leaving 6% for the City.
The entire 6% HOT revenue is used by the City to promote tourism, conventions, and the hotel industry (plus administrative costs). The HOT Grant Program shares use of this revenue.
The city council approves grant distributions to the committee’s recommended applicants during the annual budget process, or by case basis if submitted after the budget has been approved, and funds become available.
Applications are available from City Hall and completed forms should be delivered to the City Administrator. After the event project is complete, the applicant is expected to attend a meeting with City Staff/HOT Committee to report on the use of funds and outcome of the event, in consideration of future grant funding.