For Immediate Release

Council approved bed tax increase to support city's tourism efforts

Surprise AZ (January 29, 2010) The Surprise City Council unanimously approved a 1.52 percent increase in the city's transient lodging tax, or bed tax, to fund tourism development efforts in Surprise.

The approved increase is estimated to generate approximately $75,000 - $125,000 annually, and will add an additional $1.52 charge on a $100 room stay. It goes into effect March 1.

The additional revenue generated from the bed tax increase can only be used to promote tourism in Surprise, as recommended by the Tourism Advisory Board and approved by the City Council. The Surprise Hotel Association expressed support for the increase at Thursday's meeting.

"Surprise has potential as a tourist destination, and our Tourism Advisory Board has done an excellent job identifying what we need to do to develop that potential," says City Manager Randy Oliver. "The bed tax increase will only be paid by guests at our hotels so there will be no out of pocket impact on Surprise residents."

The new bed tax rate in Surprise will be 11.99%, below neighboring communities including Peoria (12.87%), Glendale (12.87%), Goodyear (12.27%) and Phoenix (12.27%).

The approximate room revenue from Surprise-based hotels was $10 million dollars for 2008, according to the Surprise Hotel Association, generating approximately $320,000 for the city's General Revenue Fund.

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