LAWRENCE, Kan. — The City of Lawrence is raising the tax it charges for hotel rooms and short term rentals.
The Transient Guest Tax (TGT), now set at 6% and going up to 8%, could be a money maker next summer with hundreds of thousands of fans expected in the Kansas City-area for the World Cup.
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Lawrence plans to use money raised by the tax to fund events and improvements the city wants to make for the World Cup.
“We’re planning on holding fan fest, we’re planning on holding community and cultural engagement throughout the region so there are some needs there that are not already identified for funding,” Luis Ruiz, Lawrence Parks and Recreation director, said.
But the City of Lawrence now knows where some World Cup funding could come from.
Lawrence City Commission voted unanimously to raise the tax Tuesday as part of its consent agenda without discussion. A chart displayed at a previous meeting showed other area cities charge hotel rooms and short term rentals between six percent and nine percent.
“So we looked to see what the market might bear what would be fair to consumers and still be able to generate some funds so we’d be able to fund in short term in 2026 World Cup and then in the long term use some of those funds that help us continue to generate tourism in the area,” Ruiz said.
The last couple of years the tax has generated just over $2 million. Next year with the tax hike and expected higher occupancy rates and room rates due to the World Cup the number could be closer to $4 million. According to city projections that number is about $940,000 more than if they didn’t raise the tax.
“We know that there will be impact. It’s hard to quantify it right now, but we will know once those hotels start getting booked,” Ruiz said.
A big factor could be whether Lawrence ends up being a spot where fans are perhaps willing to pay a little less to stay farther away from Kansas City for matches or if its awarded a base camp where fans of that nation will seek out Lawrence to be around their team.
With the charter ordinance passing unanimously Tuesday there will now be a 60 day referendum period after the ordinance is published where residents could petition for a public vote.
If not, the higher hotel tax is expected to go into effect the first of the year and last at least through 2029.
