City council approves transient guest tax for Hotel Topeka

TOPEKA (KSNT) - The City Council voted on Tuesday to approve the transient guest tax for Hotel Topeka, allowing the city to recoup its investment costs.

Hotel guests across Topeka pay a 7% tax on their hotel stays, but at Hotel Topeka this would be increased to 8%. This extra tax revenue would allow the city to pay off their investment over the course of 35 years.

"Transient guest tax is only paid by people from out of town who are staying at the hotel," said assistant city manager Braxton Copley. "And the idea is to capture that portion of the transient guest tax, which would be the increment above the baseline. What was collected at Hotel Topeka this year becomes the base year."

The city originally purchased Hotel Topeka in 2023 for more than $7 million, and over the last two years they've invested another $10 million into it. They are currently considering a $1 million offer from the Endeavor Hotel Group to purchase the building.

The council voted 9-1 in favor of the tax.

For more local news, click here. Keep up with the latest breaking news in northeast Kansas by downloading our mobile app and by signing up for our news email alerts. Sign up for our Storm Track Weather app by clicking here.