GRAYSON COUNTY, Texas (KXII) – Grayson County commissioners are looking to a new source of revenue to fund improvements at the county’s airport.
On Tuesday, commissioners decided to petition the state legislature for a hotel occupancy tax, known as a HOT tax.
“This HOT tax has to fund economic tourism. And the only thing the county has that is part of economic tourism is the airport, the North Texas Regional Airport,” said Josh Marr, commissioner for Precinct 1.
How the tax would work
The tax would apply to hotels, Airbnbs and cabin rentals. The county could collect 7% in unincorporated areas or 2% in cities that already charge the tax.
The state caps the hot tax at 15%. The state takes 6%, and local cities that already have a hot tax in place get 7%, leaving 2% that the county would ask for in those cities. The county could also apply 7% in unincorporated areas.
Unlike cities, which can create their own hotel occupancy tax ordinance, the county cannot create an ordinance on its own. The state legislature must pass a bill that is approved through local and consent before the county can opt into a hot tax.
Sherman and Denison are the two cities in Grayson County that currently have a HOT tax in place, Marr said. The new tax would not affect any tax currently collected by those cities and would be in addition to it.
Marr said the tax would not increase property taxes and would not apply to the majority of county residents.
“We’re trying to find different ways of funding the entities that we have in the county without affecting the property taxes of our constituents here in Grayson County,” Marr said.
Potential revenue
The money would fund airport renovations, freeing up general fund dollars for other county projects.
Marr said the revenue could add up quickly.
“Towards the end of last year, there’s about $1.2 million that we kind of estimated that would have come from the hot tax if it had already been in place,” Marr said.
Marr said freeing up general fund dollars could also help other county departments, including the sheriff’s department and the district attorney’s office.
The request now goes to the state legislature. The legislative session begins in January, and commissioners do not expect an answer on local consent until after the session ends, around July.
Grant application for air traffic control tower
The push to improve North Texas Regional Airport does not stop with the hotel tax. Commissioners also approved submitting a grant application that could fund upgrades to the airport’s air traffic control tower.
The grant is through a federal aviation grant program.
“If we were to receive the grant, then it would be up to $1.1 million that could be used on upgrading the tower and repairing some of the tower,” said Grayson County Judge Bruce Dawsey.
Dawsey said there is no guarantee the county will receive the grant, but applying is necessary to be considered.
Planned repairs include updating equipment and replacing windows in the tower.
“Updating some of the equipment in it, updating the windows,” Dawsey said.
Dawsey said the windows need to be airtight and are getting older, which is why they need to be replaced.
The county has matching funds available in the airport budget if the grant requires a local match, such as 5%, Dawsey said.
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