City may not recoup Hotel Topeka costs until 2060

TOPEKA (KSNT) – Assistant City Manager Braxton Copley presented two options to the City of Topeka Transient Guest Tax Committee (TGTC) Wednesday to help recover the $17.7 million that has been spent so far on Hotel Topeka.

The TGTC voted unanimously to implement a transient guest tax structure to recoup costs related to Hotel Topeka on Aug. 27. The proposal that was approved will result in a 7% transient guest tax increase until 2028 for all other hotels in Topeka, when the rates will drop to 6% and then to 5% in 2033.

To recoup the costs, Hotel Topeka will have its own special tax rate of 8%. Any tax revenue collected above the base year of 2025 will be used exclusively to reimburse the city for the purchase price, capital expenses and operating losses of Hotel Topeka. Once the city is fully reimbursed, the 8% special rate will expire, according to the ordinance.

Copley said it could be close to the end of 2060 before the city can recoup the costs associated with Hotel Topeka.

“Conceptually, option two is kind of what the governing body has already approved,” City Councilmember Spencer Duncan said.

Duncan moved to approve option two, seconded by Councilwoman Michelle Hoferer, with the motion passing 2-0. You can watch the full TGTC meeting by clicking here.

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