GRAND RAPIDS, Mich. — The Kent County Board of Commissioners approved significant changes to the Lodging Excise Tax Ordinance on Thursday.
According to the board, the changes will help pave the way for future investments in projects that benefit residents and visitors.
One of the biggest changes is an increase in the lodging excise tax from 5% to 8% as of Jan. 1, 2025.
The tax has been set at 5% since 1989 and is applied to hotels and motels for guests who stay in Kent County for less than 30 consecutive days.
This change is expected to generate about $8 million annually.
Another change is that the ordinance now includes "aquariums" and "sports complexes" as eligible investments from lodging excise tax revenue.
This comes as John Ball Zoo is working on an aquarium project that could be built in Kent County and plans are underway for a proposed 8,500-seat soccer stadium in Grand Rapids.
“The changes to the lodging excise tax ordinance are a critical step forward for our region,” said Kent County Board of Commissioners Chair Stan Stek. “We are securing the resources needed to fund projects that enhance the quality of life for our residents and drive economic development. This will bring even more visitors to our vibrant community—a place we all love and proudly call home."
The changes made to the ordinance follow the passage of House Bill 5048, which amended Public Act 263 of 1974.
This bill granted Kent County the authority to increase the lodging excise tax and expanded the list of eligible projects.
Per the legislation's provisions, it had to be put on the ballot for voters to approve the increase.
On Aug. 6, 2024, Kent County voters approved the Sports and Entertainment Facilities measure.
A project that has already broken ground is the Acrisure Amphitheater in Grand Rapids.
The board approved an agreement with the City of Grand Rapids to use money from the Lodging Excise Tax Fund to cover principal and interest payments on a $27.5 million bond issued by the city to construct the amphitheater.
The payment schedule on the bond is expected to be finalized in early 2025.
"The development of the Acrisure Amphitheater is a shining example of what we can achieve with thoughtful public and private investment in our community,” Stek said. “This state-of-the-art venue will not only be a hub for entertainment and culture but also a catalyst for local businesses and tourism."
The last change the board made to the ordinance was allocating 17% of the lodging excise tax revenue to Experience Grand Rapids (EGR).
EGR has received a portion of the lodging tax excise revenue since 1979. This would bring the total allocation given to EGR to $4 million each year.
The board said the additional funding will help the organization market the amphitheater and other projects to increase tourism.
"Experience Grand Rapids has been a valued partner in our efforts to promote Kent County as a premier destination,” said Kent County Administrator Al Vanderberg. “This additional funding will help them amplify their efforts, ensuring all of our transformational projects will attract visitors and drive further economic growth."
