Transient guest tax collections have been hitting record highs since the COVID-19 pandemic and are expected to stay there as Emporia City Commissioners get set to consider a potential increase in the transient tax rate next month.
During the latest installment of KVOE’s Q&A With Trey segment Monday, City Manager Trey Cocking discussed a recent recommendation from the city’s transient guest tax committee to increase the rate from 7 to 8 percent possibly during the city commission’s next regular meeting in September. For those unaware, Cocking explained how transient tax dollars are collected.
If approved by commissioners during their September 6th action meeting, Cocking says the rate increase would equal roughly an extra dollar in cost for short-term lodgings within Emporia. Visit Emporia Director Lelan Dains reminds residents they would not be affected by the tax increase and visitors would likely not even notice it.
That being said, Dains explains the minor rate increase could result in a significant collections increase annually.
Dains’ comments come as the city is already well ahead of where it was last year in terms of transient tax dollars collected.
In terms of contributing factors to the record collections, Dains points to a shift in preferred travel over the course of the COVID-19 pandemic. He says many individuals chose to forego destinations that required air travel in favor of “driveable destinations.”
As of the third quarter of 2023, the city is roughly $70,000 ahead of last year’s collection pace, with around $715,000. Dains says given the high level of Interstate traffic that passes through Emporia coupled with the regular slate of special events hosted in town each year, he expects record totals to continue at least into fiscal 2024.
