Guthrie voters to decide on Visitor’s Tax on Tuesday

Registered voters inside the Guthrie city limits will decide on Tuesday if the lodging tax, formally known as the hotel/motel or Visitor’s Tax, would increase from four percent to seven percent. If approved, the dollars will be allocated to youth sporting facilities.

Polls will be open from 7 a.m. to 7 p.m.

The original tax started in 1998 at four percent, where it currently stands, and is allocated for the City’s tourism efforts and city parks.

The increase will open a new funding source to make necessary improvements to city ball fields (Kiwanis Field, soccer complex), including a future sports complex currently located at Owen’s Fields.

The City won a highly competitive state-wide grant to begin building a sports complex. The award amount from the grant was $1 million with the City matching $1M for a $2 million start to the multi-phase project.

The Visitor’s Tax, which has been endorsed by the Greater Guthrie Chamber of Commerce, is only paid by a person staying in a hotel, bed and breakfast, or short-term rental (Air BNB) in Guthrie.

Chamber CEO and President Brittany Timmons says a baseball/softball complex will not only help with weekend tournaments, but local youth and league play.

“My daughter’s softball team currently plays in Edmond and is made up of mostly Guthrie kids and a few from Mulhall. All Logan County children.” Timmons added its not only her daughter’s team but many other local youths have found themselves playing in surrounding towns.

One example shared by the advocates for the tax say a hotel room that currently costs $100 will increase by $3. The total tax for a hotel room that costs $150 would increase by $4.50.

With a passage, the tax is projected generate an estimated $380,000 and would be broken down with $155,000 to sports facilities, $135,000 to tourism and $70,000 to the parks department.

According to advocates for the proposal, a yes vote would mean more visitors, which would create jobs, generate business for local hotels, restaurants, attractions, retailers, and service providers. The group adds this will also provide more opportunities for Guthrie youth and adults to participate in organized sports.

However, opponents of the increase says there would be short-term and long-term negative effects.

“Every bed and breakfast owner and every hotel or motel owner is very much against this tax increase,” local business owner Gary Good said in a social media on the discussion.

“Most of us have not raised our prices in several years, and if this passes it’s pretty much assured, we cannot. Taxes, insurance, and utilities have gone up. Inflation is going crazy,” Good said.

Good added that he supports the sports complex but says it should not depend on the hospitality industry.

“I am all for progress, and I’ve always been a sports guy as well as my kids. A sports complex would be great, and I applaud those who are working on it. I just wish the hospitality industry was not the one being singled out,” Good said.

He added, “I am not voting no on progress, and would be happy to see a new sports complex. But I will be voting no on this tax increase.”

The City of Stillwater saw a similar ballot question, increasing from 4 to 7%, in February and passed with over 70% of the vote.

Guthrie’s Visitor Tax dollars (approximate) over the last five years:

2017 – $202k
2018 – $236k
2019 – $210k
2020 – $171k (down 18%)
2021 – $205k (up 20%)

The following Q&A came from a social media conversation on the proposal. Chris Evans with Guthrie News Page responded to the questions.

When does the tax drop off?

 — Like the current 4% Visitor Tax, this new tax – of an additional 3% – would not have a sunset. This original tax began in 1998 with two-thirds going to tourism and one-third to the parks – along with a 5% administration fee to manage those funds. These funds also do not have a sunset.

Where does money for the building of fields come from?

— The money to begin to build the complex will come from a state-wide grant that the City won through a very competitive process and local funds from the CIP sales tax. Each fund is $1M. So, there will be $2M in funds to begin building the complex. Much more is needed, but it’s a great start. With an approved Visitor’s Tax on Tuesday, those funds will help make necessary (larger) improvements to the City’s sports facilities (baseball, softball, soccer).

Who is overseeing the funds?

— Beginning in July, regardless of the outcome of the Visitor’s Tax, the Oklahoma Tax Commission will collect all taxes from hotels, motels, bed and breakfasts and Air BNB’s. The money will be then allocated to the City of Guthrie, who would hold the funds for the larger improvements to the facilities.

Who was included in (sports complex) meetings?

— Along with the City Manager and members of City Staff, each youth sport was represented along with sports administration from the local school district. I have also been in those meetings.

The Hospitality Industry is coming off the worst financial hit ever

— Many industries, businesses and retails suffered in 2020 with the pandemic. Guthrie has done really well when it has come to local sales tax collections. The Visitor Tax did indeed dip in 2020 (by 18%) but rebounded by 20% in 2021 and near the five-year average.

Do we need fields, yes. Just not sure this is the answer.

— There is no doubt Guthrie needs improvements to their youth facilities. Not only are the facilities in poor condition, but they are among the worst across the state. I’m not sure there are any perfect answers to push forward, but we have been looking for answers to youth facilities for multiple decades. 

Where did the $10 million estimate come from to build the sports complex?

— I don’t believe there is a good estimate on how much a completed complex would cost. I’m sure it could be much more than $10M if we could go all in with scoreboards and LED lights on all fields and concrete parking lots. Not able to happen currently. Maybe one day, but most definitely not know.

If the facility is built, would there be a charge at the gate to watch games? If so, where does that money go?

— I would certainly think there would not be an admission for league games (as it is now), but yes for tournaments. That is the common practice for baseball and softball complexes. Gate and concession money would go to the group, who would overlook the facility. This gate and concession money would pay for concession stand inventory, pay for umpires, chalk, stock the bathroom and other costs involving the complex (rakes, fuel, etc.).

Would the manager also manage concessions? If so, where would that money go?

— Yes. That money would stay with the group who would overlook the complex to help with the day-to-day costs.

How many fields are being built?

— Final renderings have not been nailed down. There will be public meetings on this as it will need to have a council approval. Right now, there appears to be 3 new fields for a total of five fields, along with that would accommodate both softball and baseball. The funding will also help with infrastructure, parking, and roadway.

Is the cost of land for the new facility donated or is it part of the $10 mill estimate?

— The City of Guthrie already owns the land.

Is this just softball and baseball or is there enough space for football and soccer?

— Soccer has a facility on Academy. With a Tuesday passage, funds would also help with that facility improvements. Right now, football is in good condition (tremendous when compared to baseball and softball in Guthrie) with Jelsma Stadium and the HS practice field.