WASHINGTON — The DC Council is holding its final session Tuesday before new members are sworn in next month. Council members are set to vote on a number of issues.
First, members are expect to vote on a plan to boost tourism by increasing the tax on hotel rooms by 1%. Right now, that works out to about $15 for every $100 spent on a room in the District. The proposed increase would raise the price to about $16.
Destination DC says the tourism tax will raise more than $20 million a year and put D.C. on par with some other big cities and their advertising budgets.
D.C. leaders say tourism has taken a hit during the pandemic, and has not fully rebounded. The industry has lost about $3 million and 22,000 tourism jobs. If approved, the emergency legislation would make the extra fee temporary starting in April 2023 and last until March of 2027.
"There are several large cities which are doing the same thing, which is a temporary tax," said Council Chair Phil Mendelson during a media briefing. "If the tax increase isn't too high, it's not going to have a net decrease in tourism."
Destination DC CEO Elliott Ferguson sent a statement in support of the proposal.
"Increasing tourism creates real benefits for the city and residents, like more local jobs and tax revenue from visitors. As we compete globally with every other destination trying to regain market share, these dollars will give us the wherewithal to remain equally as competitive," Ferguson said.
Also on the agenda for Tuesday, the Council is expected to take a second vote on a program offering free Metrobus rides next summer. The bill would also fund overnight bus service for 12 major lines. It would also establish a $10 million bus service improvement fund. The $100 subsidy for trips outside of D.C. has been dropped from the plan to lower the cost.
Lastly, a bill to help homeowners stuck paying to fix the damage of uninsured contractors is one step closer to becoming law. The change comes after a years-long investigation by WUSA9 into the former DC Department of Consumer and Regulatory Affairs.
The legislation would require contractors to have liability insurance before starting a project. It also delays the application process.