Tulsa's Hotel Assessment Charge Goes Into Effect

The Tulsa Improvement District Assessment went into effect on Monday tacking on an extra 3% to the city's larger hotels.

Ray Hoyt, the President of Regional Tourism says in 2017 about 9 million people came to Tulsa. Of those, only 3 million stayed in hotel rooms. Proponents believe the new assessment will drive economic growth while those who disagree with it say it was unfairly put together.

The ordinance adds a 3% charge onto any occupied room and applies to all Tulsa hotels with 110 rooms or more.

"That money is specifically spent to market events activities and services that directly impact the hotel class that's paying the assessment," said Ray Hoyt, President of Regional Tourism.

Right now more than 30 hotels are part of the assessment. About 10 hotels that aren't required, have opted in.

Ray Hoyt, the President of Regional Tourism, says the charge is necessary for Tulsa to be competitive with the region. It's expected to raise a little more than $2 million dollars.

"Gonna help us set aside some very unique marketing and destination stuff that we can do for those hotels that we could never do right now," said Hoyt.

Attorney Trevor Henson represents more than a dozen hotels in the lawsuit against the city.

"The statutes in Oklahoma set out that if over half of the parties to be subject to an assessment district object in writing prior to the creation to the assessment district that it shouldn't be created," said Attorney Trevor Henson.

Henson said the hotels are not opposed to the assessment but disagree with the way it was presented, created and approved by the city.

"There's concern that it's going to be utilized to the benefit of certain hotels in favor of other hotels and there's concern that it's not actually not going to be utilized to actually benefit the hotels themselves," said Attorney Henson.

The city of Tulsa told News On 6 they do not comment on pending litigation.

The lawsuit is making its way through the court process.