Austin, Texas, Proposition B, Convention Center Development and Hotel Tax Revenue Allocation (November 2019)
| Proposition B: Austin Convention Center Development and Hotel Tax Revenue Allocation |
|---|
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| The basics |
| Election date: |
| November 5, 2019 |
| Status: |
 Defeated
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| Topic: |
| Local hotel tax |
| Related articles |
| Local hotel tax on the ballot November 5, 2019 ballot measures in Texas Travis County, Texas ballot measures City budget on the ballot |
| See also |
| Austin, Texas |
A citizen initiative proposing voter approval for convention center development and a limit on hotel tax revenue allocated for its development was on the ballot for Austin voters in Travis County, Texas, on November 5, 2019. It was defeated.
| A yes vote was a vote in favor of requiring voter approval for all convention center improvements exceeding $20 million and limiting the portion of Austin's hotel tax revenue allocated to the operation, maintenance, and improvement of the convention center to 34 percent. |
| A no vote was a vote against this initiative requiring voter approval for all convention center improvements exceeding $20 million and limiting the portion of Austin's hotel tax revenue allocated to the convention center to 34 percent, thereby maintaining the amount allocated to the convention center at 64.29 percent. |
Election results
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Austin (Full and Limited) Proposition B |
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|---|---|---|---|---|
| Result | Votes | Percentage | ||
| Yes | 41,947 | 45.61% | ||
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50,012 | 54.39% | ||
-
- Results are officially certified.
- Source
Text of measure
Ballot question
The ballot question was:[1]
| “ |
Shall an ordinance be adopted that prioritizes the use of Austin's Hotel Occupancy Tax revenue by continuing the City practice to spend 15% of the Austin Hotel Occupancy Tax revenue on cultural arts and 15% on historic preservation, limiting the City' s spending to construct, operate, maintain, or promote the Austin Convention Center to 34% of Austin's Hotel Occupancy Tax revenue, and requiring all remaining Hotel Occupancy Tax revenue to support and enhance Austin's Cultural Tourism Industry to the potential exclusion of other allowable uses under the Tax code; and requires the City to obtain voter approval and public oversight for convention-center improvement and expansion costing more than $20,000,000.[2] |
” |
Full text
The full text of the measure is available here.
Support
Unconventional Austin led the campaign in support of Proposition B.
Supporters
- Brigid Shea, Travis County commissioner[3]
- John Riedie, Tourism Commission member[3]
- Brian Rodgers, Tourism Commission member[3]
- Austin Independent Business Alliance[3]
Arguments
- Michael Searle, former chief of staff to Austin City Council Member Ellen Troxclair, said, "I believe that the public ought to have the right to vote on a $1.2 billion convention center expansion and that there are higher needs in Austin for those funds than a convention center, which is a failing business model that lost $43 million last year alone."[4]
Opposition
PHAM PAC led the campaign in opposition to Proposition B.
Opponents
Arguments
- Mike Shea, chief logistics officer for SXSW, a conference and event planning company, said, "The Convention Center is one of Austin’s major drivers of cultural, economic and business activity. An expanded and improved center will increase the beneficial impacts and attract more events."[4]
Background
Austin Convention Center expansion
On May 23, 2019, the Austin City Council unanimously voted in favor of a $1.2 billion contract to expand the Austin Convention Center. The details of the plan passed in the resolution included:[6]
- expanding the convention center to the west of its existing structure;
- rebuilding a portion of the existing center;
- preserving Palm School;
- improving infrastructure along Rainey Street; and
- creating a park next to Waller Creek.
Hotel tax increase
In August of 2019, the Austin City Council unanimously voted to increase the city's hotel tax from 7 percent to 9 percent, raising the total hotel tax to 17 percent, including 6 percent for the state and a 2 percent venue tax. The revenue from the added 2 percent must go towards convention center expansion according to state law. In 2019, the maximum hotel tax allowed by state law was 17 percent. Austin's increased share of the tax limits Travis County from collecting a hotel tax within Austin. Travis County Proposition A, which was on the November 5, 2019 ballot, authorizes a 2 percent hotel tax on hotels in Travis County, excluding those within Austin which already collect the state maximum tax. Revenue from the Travis County hotel tax will be devoted the expansion of the Expo Center.[7][8]
Path to the ballot
This measure was put on the ballot through a successful initiative petition campaign led by Unconventional Austin. The city clerk verified over 24,000 signatures for the petition that needed at least 20,000.[9]
See also
External links
Support |
Opposition |
Footnotes
- ↑ Austin City Council, "Ordinance No. 20190826-001," accessed September 10, 2019
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
- ↑ 3.0 3.1 3.2 3.3 Unconventional Austin, "Endorsements," accessed November 1, 2019
- ↑ 4.0 4.1 KXAN, "Who spent money for and against Austin’s Proposition B?" October 18, 2019
- ↑ 5.0 5.1 5.2 5.3 PHAM PAC, "Endorsements," accessed November 1, 2019
- ↑ Austin City Council, "Resolution No. 20190523-029," accessed November 1, 2019
- ↑ KXAN, "Austin City Council votes to raise hotel occupancy tax, angering county leaders," August 8, 2019
- ↑ Texas Legislature, "Texas State Statute V., Chapter 334," accessed November 1, 2019
- ↑ KXAN, "Petition meets threshold to bring Austin convention center expansion to a public vote," July 30, 2019
