By Parker Leavitt | The Arizona Republic
Elimination or reduction of Gilbert’s hotel bed tax will once again be a topic of debate for the Town Council this week after a recent council clash over plans to seek state funding for tourism promotion.
With the opening of several new hotels in recent years, Gilbert has begun to put more attention into tourism marketing, hoping for an economic boost as visitors spend money at local shops and restaurants.
Hotel guests in Gilbert currently pay a 3 percent local bed tax, which brings about $300,000 a year into the town’s general fund. Municipalities are required to reinvest a portion of their bed-tax revenue into tourism-related programs.
Councilman Victor Petersen has repeatedly called for an end to the town’s bed tax, suggesting that the funding should be left to the private hotels to do their own marketing. Councilmen Eddie Cook and Jared Taylor have expressed similar sentiments.
Other council members have been more supportive of the tax, pointing out that a private business has incentive to promote only its own specific location, while the town’s marketing efforts can elevate the community’s profile.
