TO: Galveston City Council
FROM: Gil Langley, CAE
RE: Hotel Tax Collections
DATE: October 7th, 2003
With the agenda slated to include a discussion on hotel occupancy tax collections on the West End of Galveston, I thought I’d supply you with some information in advance. As you know, the Park Board of Trustees is funded primarily through two sources of user fees – Hotel Occupancy Taxes and Beach User Fees. Below is the current usage allocation of Hotel Occupancy Tax as set by City Council and the State of Texas.
| Local | State | Total | |
|---|---|---|---|
| Convention Center Operations | 2.1250 | 2.1250 | |
| Beach Cleaning | 0.5000 | 0.76660 | 1.2666 |
| Beach Patrol | 0.5000 | 0.66670 | 1.1667 |
| Arts Funding | 0.8750 | 0.8750 | |
| Tourism Development | 3.000 | 3.0000 | |
| Nourished Beach | 0.56670 | 0.5667 | |
| TOTAL | 7.0000 | 2.0000 | 9.0000 |
In the twelve (12) month period ending June 30th, 2003, the total hotel tax collections on the 9% rate were $6,249,558.31. Based on that figure, dedicated revenues were as follows.
| Local | State | Total | |
| Convention Center Operations | $1,475,590 | $1,475,590 | |
| Beach Cleaning | $347,197 | $532,323 | $879,521 |
| Beach Patrol | $347,197 | $462,953 | $810,151 |
| Arts Funding | $607,595 | $607.595 | |
| Tourism Development | $2,083,186 | $2,083,186 | |
| Nourished Beach | $393,513 | $393,513 | |
| TOTAL | $4,860,765* | $1,388,789* | $6,249,556* |
* Rounded to Nearest Whole Dollar Of the total amount of tax collected during the period, $846,094.28 was paid by tourists staying at properties on the West End. That represents approximately 13.5% of the total tax collected. Of the total amount dedicated to Beach Cleaning by law, $47,005.24 was generated by the .5 local mandate, while $72,068.43 was generated by the .7666 state mandate – a total of $119,073.76. Our total approved budget for Beach Cleaning in FY 2003 was $1,753,965, while our projected actual including the emergency expenditure of $200,000 will be $1,941,276. Our approved budget for FY2004 is $1,708,277. IN FY2004, our revenue stream for Beach Cleaning is $821,686 from Hotel Tax, $601,272 from Beach User fees, and $300,000 from grants and governmental contracts.