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November 29, 2010

Marlborough Increases Hotel Tax To 11.7%

Marlborough's city council has voted to increase the city's hotel occupancy tax to 11.7 percent, which is expected to generate between $400,000 and $500,000 in additional revenue annually.

Currently, the city's hotel tax is 9.7 percent with 4 percent collected by the city. The new, higher rate will allocate 6 percent to the city. At the current rate, the city collects about $1.1 million per year in revenue.

The state levies a 5.7-percent hotel tax and allows municipalities to levy up to an additional 6 percent.

Marlborough's increase was approved by a 7-4 city council vote.

The increased revenue will be targeted for efforts spearheaded by the Marlborough Economic Development Corp.

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