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.
