Proposed 3% Hotel/Motel Guest Tax Increase would support financing package
FOR IMMEDIATE RELEASE
The Springfield City Council is considering a ballot measure that would ask voters this fall to approve an increase in the City’s hotel/motel guest license tax to help fund the construction of a regional convention and event center. A critical driver of the City’s timing is the opportunity to secure $30 million in state funding for the event center project, currently on a state withhold list pending stability of state revenues and demonstration of a local $30 million dollar match and project readiness. These funds, authorized through House Bill 7 and signed by Gov. Mike Kehoe on June 30, require Springfield to move swiftly and decisively to demonstrate community support and financial preparedness.
“The Governor and state leaders have made it clear that Springfield has a significant opportunity, but also a responsibility—to bring a credible match and be ready to act,” said City Manager David Cameron. “We’re at a pivotal moment. This ballot measure is a key component of an overall financing package and plan showing the state we’re ready to deliver.”
The proposed ballot initiative and financing model discussed at Tuesday’s City Council meeting was aimed at finding a way to fund a new convention and event center to strengthen Springfield’s tourism economy. The new center would be a venue for large-scale conventions, sports tournaments, performances, and community events.
If an ordinance is contemplated, it would authorize asking voters to decide whether to approve a 3% increase in the city’s current hotel/motel guest license tax. This additional tax would be paid by overnight visitors staying in hotels, motels, tourist courts, and short-term rentals. The proposed ballot language would specify what exactly the increase would be used for.
Summary of Springfield’s Hotel/Motel License Tax Increase Plan
- Current Springfield rate: 13.10% (2nd lowest among listed surrounding cities)
- Proposed new rate: 16.10%
- Resulting position: Springfield would move from 2nd lowest to middle of the pack among peer cities
- Comparison: Even after the increase, Springfield’s rate would still be lower than major cities like Memphis (18.75%), Overland Park (18.35%), St. Louis (17.93%), and Kansas City (16.48% + $3/room night).
“Springfield’s proposed increase to 16.10% would still keep it competitive and below average compared to many regional destinations, while moving it closer to the mid-range of hotel tax rates in the region,” explained Amanda Ohlensehlen, director of Workforce and Economic Vitality.
“This is an important step forward in determining how we invest in Springfield’s future,” said Mayor Jeff Schrag. “A convention and event center would be a transformational project that drives economic growth, supports local jobs, and positions Springfield as a premier destination for regional and national events.”
It was also discussed that the 3% proposal would have to be a part of a broader financing vision that could also be supported by the half-cent portion of the Spring Forward SGF sales tax for transformative projects approved by voters in November 2024. The Spring Forward SGF The Citizen Advisory Board’s regular meeting is July 30.
Proposed Funding Stack
Ohlensehlen, City Finance staff and consultants outlined a working funding model that would support long-term debt service and development costs.
Key elements include:
- New 3% Hotel/Motel Guest Tax(subject to voter approval)
- ½-Cent Sales Tax for Transformational Projects, approved by voters in November 2024 and in collection as of April 2025
- Reallocation of Existing Hotel/Motel Tax revenues, including a portion currently committed to Series 2000A debt service
- State Support authorized by Missouri House Bill 7, signed by the Governor in June 2025
- Additional Public-Private Partnerships under development
- Future Incentive and Revenue Strategies, including naming rights, sponsorships, and event-related revenues.
“This is very much a rough draft working funding model that considers new and existing resources in a responsible way, leveraging tourism-related revenue streams and fulfilling the interest residents told us in approving the Spring Forward SGF sales tax for transformative project” said Cameron. “We are only 17 working days after the Governor signed the budget.
At the end of the meeting, with lengthy discussion, Council supported bringing a ballot ordinance for formal consideration to Council’s July 28 meeting.
If a measure to put an increase in hotel/motel tax is approved then, a public education campaign would begin July 29 and run through the Nov. 4, 2025 election, ensuring voters have access to transparent, accurate information about the convention and event center project and the consideration of the proposal.
In addition to the convention and event center, the City is exploring the feasibility of a connected hotel, enhanced financing strategies, and incentives to maximize the economic return of the development. Further planning and coordination with consultants will continue in the months ahead.
Proposed ballot language as discussed in the meeting
Shall the City of Springfield, Missouri, impose an additional three percent (3%) license tax on the business of renting, leasing, or letting living quarters, sleeping accommodations, rooms, or a part thereof, in connection with any hotel, motel, tourist court, or short-term rental, derived from or paid by transient guests for sleeping accommodations for the purpose of attracting travel and tourism, including the construction of a regional convention and event center?
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For more information, contact Cora Scott at 417-380-3352 or [email protected].
(Except for the headline, this story has not been edited by PostX News and is published from a syndicated feed.)