News Summary
Kent County has raised its hotel tax from 5% to 8%, aiming to boost tourism revenue for local projects. The change, approved by voters, has generated nearly $1 million in just two months of 2025 and is set to support significant developments, including the Acrisure Amphitheater. Despite concerns about rising costs for visitors, local feedback remains positive, highlighting the importance of improved tourism infrastructure for the area’s economy.
Kent County has officially raised its hotel tax from 5% to 8%, a change aimed at generating significant revenue for local tourism projects. The tax hike, which was approved by voters in August, aims to support major developments such as the Acrisure Amphitheater and Amway Stadium, contributing to future tourism infrastructure funding.
In just the first two months of 2025, the increased hotel tax has generated an additional $999,469. Total hotel tax revenue for January and February reached approximately $5.8 million, comprising about $4.8 million collected from the previous 5% rate and the new 3% increase that took effect in January.
These additional funds are particularly crucial for covering debt payments related to the $127 million borrowed by Grand Rapids to finance various tourism projects. The county is set to make its first bond payment of $2.2 million in October 2025, highlighting the urgency of this tax revenue for making timely repayments.
The cumulative tax burden on guests staying in Kent County hotels now totals 18%. This sum is made up of the state sales tax, which is 6%, the new hotel tax of 8%, and a 4% marketing assessment. Despite the increase in costs for visitors, feedback has indicated limited public pushback. Local leaders in the hospitality sector report no major complaints from hotel operators or clients concerning the tax rise.
The revenue generated from the hotel tax increase is earmarked for various local initiatives. Plans allocate $770,279 to Experience Grand Rapids, the organization responsible for promoting tourism in the area, and an additional $200,000 to ArtPrize, which is known for its prominence in the local arts scene and for maintaining the amphitheater.
The Kent County budget for 2025 forecasts an expected revenue of $6.1 million from the new 3% hotel tax, alongside $13.6 million from the existing 5% tax, amounting to an overall total of approximately $19.7 million in hotel tax revenue. This projection signifies the county’s commitment to enhancing its tourism infrastructure and offerings, a vital part of its economic strategy.
While some critics have raised concerns regarding the increase in hotel taxes, local leaders continue to express their unwavering support for the measure. They emphasize the importance of bolstering the county’s tourism infrastructure, which in turn is expected to attract more visitors and aid the local economy. As Kent County continues to navigate this phase of growth, the focus remains on maintaining a delicate balance between supporting tourism development and managing costs for visitors.
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Additional Resources
- MLive: Kent County Hotel Tax Increase Generates Nearly $1 Million in First Two Months
- Wikipedia: Kent County, Michigan
- Sports Business Journal: Kent County Hotel Tax
- Encyclopedia Britannica: Hotel
- WZZM13: Kent County Hotel Tax Proposal Election Results
- Google Search: Kent County hotel tax increase
- Fox17 Online: Proposed Hotel and Lodging Tax Ballot Proposal
- Google News: Kent County hotel tax
Author: STAFF HERE GRANDRAPIDS WRITER
GRAND RAPIDS STAFF WRITER The GRAND RAPIDS STAFF WRITER represents the experienced team at HEREGrandRapids.com, your go-to source for actionable local news and information in Grand Rapids, Kent County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as ArtPrize, Festival of the Arts, and World of Winter. Our coverage extends to key organizations like the Grand Rapids Chamber of Commerce and Grand Rapids Community Foundation, plus leading businesses in furniture, healthcare, and technology that power the local economy such as Steelcase, Spectrum Health, and Meijer. As part of the broader HERE network, including HEREDetroitMI.com, HERENorthville.com, HERENovi.com, and HEREPlymouth.com, we provide comprehensive, credible insights into Michigan's dynamic landscape.
