In a positive sign for the local economy, the latest estimates show Madison’s hotel room tax is projected to surpass estimates for 2023 and bring in a healthy $19.6 million for this year, according to a report from the Wisconsin State Journal.
Hotel room tax levels peaked at $18.9 million in 2019, before hitting rock bottom in 2020 with just $5.9 million. Room tax levels rebounded to $12.1 million in 2021.
The city had budgeted $14.2 million for 2022, but pre-final numbers now show collections at $18.7 million. The city had budgeted $19 million for 2023, but projections now put the sum at $19.6 million for this year.
Under state law, the city must channel at least 70% of hotel room tax collections to tourist-related activities, as decided by the Room Tax Commission. The city uses the rest for the general fund.
For this year, Monona Terrace is budgeted to receive $6.69 million; Overture Center, $2.1 million; Destination Madison, $5.3 million; and the city’s general fund, $5.7 million. The new projections would boost the general fund share to $5.9 million.
