02 DT Sports Complex - Financial Impacts, Terms Sheet, HOT Rates

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    Facts of Hotel Occupancy Tax Rate and Revenues Collected

    Currently the breakdown of the current 15.5% Hotel Occupancy Tax (HOT) is as follows:o 6% to the State of Texaso 7%* to the City of El Paso (15% is dedicated to the Museums & Cultural Affairs Department)

    4.5% is shared by Destination Marketing/Facility Operations 3% for Destination Marketing/Facility Operations 1.5% Dedicated to Destination Marketing

    2.5% to the City of El Paso Debt Service/Capitalo 2.5% to the County of El Paso

    Over 80% of the Countys portion is used towards the operation of the El Paso CountyColiseum

    Of the proposed 17.5% HOT, 2% will be dedicated towards the funding of a new baseball park indowntown El Paso.

    While it appears that El Paso will have the highest HOT rate in the state, when the actual revenue iscalculated per night, El Paso still ranks as one of the most affordable cities. The proposed increase of 2%

    results in an additional $1.40 per night based on El Pasos current Average Daily Rate (ADR).

    When compared to other Texas cities, El Paso continues to reflect the lowest Average Daily Rate.

    Currently Las Cruces imposes a 12.56% tax plus a $2.50 flat rate per night, resulting in a effective rate of15.88% HOT. The $2.50 per night is dedicated to the newly constructed Convention Center.

    0.00%

    5.00%

    10.00%

    15.00%

    20.00%

    Effective Tax Rate

    $-

    $5.00

    $10.00$15.00

    $20.00

    $25.00

    $30.00

    Total Tax Collected per Night

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    Comparision of Hotel Occupancy Tax Rate and Revenues Collected

    With the proposed 2% increase in HOT, El Paso will be ranked highest in the state.

    Ci ty T otal Ro om Ta x T otal Ro om Fees E ffec ti ve Ta x R ate AD R* T otal Ta x i n $ Gro ss Ta xab le Receip ts T otal Ta x R even ue** T otal Ta x R even ue Less State

    El Paso - Proposed 17.50% 17.50% 70.05$ 12.26$ -$ -$ -$

    Houston 17.00% 17.00% 96.80$ 16.46$ 1,017,192,297.37$ 172,922,690.55$ 111,891,152.71$

    San Antonio 16.75% 16.75% 99.94$ 16.74$ 747,528,781.80$ 125,211,070.95$ 80,359,344.04$

    El Paso - Current 15.50% 15.50% 70.05$ 10.86$ 127,347,176.87$ 19,738,812.41$ 12,097,981.80$

    Arlington 15.00% 15.00% 78.52$ 11.78$ 86,016,547.13$ 12,902,482.07$ 7,741,489.24$

    Austin 15.00% 15.00% 108.98$ 16.35$ 552,163,583.00$ 82,824,537.45$ 49,694,722.47$

    Grapevine 15.00% 15.00% 159.51$ 23.93$ 206,858,892.67$ 31,028,833.90$ 18,617,300.34$

    Dallas 13.00% 13.00% 98.43$ 12.80$ 551,135,429.08$ 71,647,605.78$ 38,579,480.04$

    Las Cruces 12.56% 2.50$ 15.88% 75.33$ 11.96$ 36,480,000.00$

    Ci ty T otal Ro om Ta x T otal Ro om Fees E ffec ti ve Ta x R ate AD R* T otal Ta x i n $ Gro ss Ta xab le Receip ts T otal Ta x R even ue** T otal Ta x R even ue Less State

    Grapevine 15.00% 15.00% 159.51$ 23.93$ 206,858,892.67$ 31,028,833.90$ 18,617,300.34$

    San Antonio 16.75% 16.75% 99.94$ 16.74$ 747,528,781.80$ 125,211,070.95$ 80,359,344.04$

    Houston 17.00% 17.00% 96.80$ 16.46$ 1,017,192,297.37$ 172,922,690.55$ 111,891,152.71$

    Austin 15.00% 15.00% 108.98$ 16.35$ 552,163,583.00$ 82,824,537.45$ 49,694,722.47$

    Dallas 13.00% 13.00% 98.43$ 12.80$ 551,135,429.08$ 71,647,605.78$ 38,579,480.04$

    Arlington 15.00% 15.00% 78.52$ 11.78$ 86,016,547.13$ 12,902,482.07$ 7,741,489.24$

    El Paso - Current 15.50% 15.50% 70.05$ 10.86$ 127,347,176.87$ 19,738,812.41$ 12,097,981.80$

    El Paso - Proposed 17.50% 17.50% 70.05$ 12.26$ -$ -$ -$

    Las Cruces 12.56% 2.50$ 15.88% 75.33$ 11.96$ 36,480,000.00$

    Despite a 2% increase in HOT, the city's portion of the total revenue collected ranks second to last when compared to the 6 major Texas cities.

    Ci ty T otal Ro om Ta x T otal Ro om Fees E ffec ti ve Ta x R ate AD R* T otal Ta x i n $ Gro ss Ta xab le Receip ts T otal Ta x R even ue** T otal Ta x R even ue Less State

    Houston 17.00% 17.00% 96.80$ 16.46$ 1,017,192,297.37$ 172,922,690.55$ 111,891,152.71$

    San Antonio 16.75% 16.75% 99.94$ 16.74$ 747,528,781.80$ 125,211,070.95$ 80,359,344.04$

    Austin 15.00% 15.00% 108.98$ 16.35$ 552,163,583.00$ 82,824,537.45$ 49,694,722.47$

    Dallas 13.00% 13.00% 98.43$ 12.80$ 551,135,429.08$ 71,647,605.78$ 38,579,480.04$

    Grapevine 15.00% 15.00% 159.51$ 23.93$ 206,858,892.67$ 31,028,833.90$ 18,617,300.34$

    El Paso - Current 15.50% 15.50% 70.05$ 10.86$ 127,347,176.87$ 19,738,812.41$ 12,097,981.80$

    Arlington 15.00% 15.00% 78.52$ 11.78$ 86,016,547.13$ 12,902,482.07$ 7,741,489.24$

    El Paso - Proposed 17.50% 17.50% 70.05$ 12.26$ -$ -$ -$

    When compared to other Texas cities, El Paso continues to reflect the lowest Average Daily Rate.

    Ci ty T otal Ro om Ta x T otal Ro om Fees E ffec ti ve Ta x R ate AD R* T otal Ta x i n $ Gro ss Ta xab le Receip ts T otal Ta x R even ue** T otal Ta x R even ue Less State

    Grapevine 15.00% 15.00% 159.51$ 23.93$ 206,858,892.67$ 31,028,833.90$ 18,617,300.34$

    Austin 15.00% 15.00% 108.98$ 16.35$ 552,163,583.00$ 82,824,537.45$ 49,694,722.47$

    San Antonio 16.75% 16.75% 99.94$ 16.74$ 747,528,781.80$ 125,211,070.95$ 80,359,344.04$

    Dallas 13.00% 13.00% 98.43$ 12.80$ 551,135,429.08$ 71,647,605.78$ 38,579,480.04$

    Houston 17.00% 17.00% 96.80$ 16.46$ 1,017,192,297.37$ 172,922,690.55$ 111,891,152.71$

    Arlington 15.00% 15.00% 78.52$ 11.78$ 86,016,547.13$ 12,902,482.07$ 7,741,489.24$

    El Paso - Current 15.50% 15.50% 70.05$ 10.86$ 127,347,176.87$ 19,738,812.41$ 12,097,981.80$

    El Paso - Proposed 17.50% 17.50% 70.05$ 12.26$ -$ -$ -$

    Las Cruces 12.56% 2.50$ 15.88% 75.33$ 11.96$ 36,480,000.00$

    *Office of the Governor, Texas Economic Development & Tourism Division for 2011

    **Texas Comptroller for 2011

    W e t appears t at E Paso as t e g est rate, w en cacu ate t e actua revenue co ecte per n g t E Paso ran s ast n Texas. T e propose ncrease o resuts

    in an additional $1.40 while maintaining affordable rate compared to other Texas cities.

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