PROPOSITION 2: Guest Tax Rate
On April 7, 2026, Proposition 2 will be on the ballot for Norman voters. Voters will consider increasing the Guest Tax from 8% to 10% and consider expanding the tax to include overnight stays in recreational vehicle (RV) rental spaces.
The Guest Tax – which is only paid by visitors, not by Norman residents – is a tax on short-term overnight stays in hotels, motels, or other rentals such as Airbnbs or VRBOs within the City of Norman. This is not a new tax. It was first established in Norman in 1980.
Visitors fuel the economy, and the Guest Tax (which will appear on the ballot as the “Transient Guest Tax”) provides our City with funding to improve our quality of life, support economic development, attract visitors, and help maintain Norman’s extensive parks and cultural infrastructure, which are enjoyed by Norman residents and visitors alike:
- Parks and green spaces
- Youth sports facilities
- Trails and greenbelts
- Recreation and cultural centers
- Public art programs
- Festival and holiday enhancements
Over the past several years, Norman has made significant investments in public art, education, infrastructure, festivals, concerts and community events. By modestly increasing the Guest Tax rate and expanding it to include overnight RV stays, the city can use taxes paid by visitors to continue enhancing community cornerstones and unique events for Norman residents and attracting visitors without placing any additional tax burden on local taxpayers.
To cast a ballot, residents must be registered to vote no later than March 13. The deadline to request an absentee ballot is March 23, and early voting will be available on April 2 and April 3.
Frequently Asked Questions
WHAT IS ON THE BALLOT?
Increasing the Guest Tax (to appear on the ballot as the “Transient Guest Room Tax”), paid for by non-residents, from 8% to 10%; and the inclusion of such tax to overnight recreational vehicle (RV) rental spaces in Norman.
The Guest Tax – which is only paid by visitors, not by Norman residents – is a tax on short-term overnight stays in hotels, motels, or other rentals such as Airbnbs or VRBOs within the City of Norman. This is not a new tax. This tax has been in place in Norman since 1980.
WHO PAYS GUEST TAX?
Non-resident visitors to Norman, such as people staying in hotels, motels or other short-term rentals like AirBnbs or VRBOs, currently pay a Guest Tax.
If Proposition 2 is approved on April 7, those staying in overnight recreational vehicle (RV’s) rental spaces in Norman would also begin paying a Guest Tax.
However, all Normanites with proof of residency are exempt from paying the Guest Tax – even when staying in a hotel or other short-term rental. Residents should provide an ID with their Norman address or a copy of their utility bill upon booking rooms to qualify for the exemption.
WHAT DOES GUEST TAX GO TOWARD?
Revenues from the Guest Tax are used to fund convention and tourism, community art, and improvements to the City’s parks and recreation system.
By leveraging “other people’s money” via this tax, the City can maintain and improve a wide range of community assets that our residents use year-round, while reducing pressure on local tax dollars. These include:
- Parks and green spaces
- Youth sports facilities
- Trails and greenbelts
- Recreation and cultural centers
- Public art programs
- Festival and holiday enhancements
These amenities improve quality of life, support economic development, attract visitors, and help maintain Norman’s extensive parks and cultural infrastructure.
In the latest community-wide Parks and Recreation survey – conducted every five years – 85.1% of participants said they or a member of their household visited a City of Norman park or facility within the past year (9.5% points above the national average of park/facility goers); and 35% of respondents said that they or a member of their household participated in a program offered through the City of Norman Parks and Recreation Department during the past year (3.4% points above the national average of program participation).
HOW ARE ALLOCATIONS OF FUNDING DECIDED?
Allocations are set forth in contracts between the City of Norman and VisitNorman and Norman Arts Council. Contracts are ultimately approved by the Norman City Council.
If approved, the newly proposed split includes 50% to VisitNorman, 25% to Norman Parks & Recreation Department, and 25% to Norman Arts Council.
WHAT IS THE PROPOSITION LANGUAGE?
“Shall Ordinance O-2526-32 of the Council of the City of Norman, Oklahoma, increasing the Transient Guest Room Tax Rate by two percent (2%) to a total of ten percent (10%) and expanding the application of the tax rate to include spaces temporarily rented for overnight stays in a recreational vehicle, effective on July 1, 2026, be approved?”
WHERE CAN I REVIEW THE ORDINANCE?
You can view the ordinance here.
WHAT IS THE PROPOSED EFFECTIVE DATE OF THE CHANGES?
If Proposition 2 is approved by voters, the new rate and expanded application would take effect on July 1, 2026.
WILL THERE BE OTHER ITEMS ON THE BALLOT?
Yes, there will be five city-wide propositions on the ballot for Norman voters on April 7, 2026. Learn more here.
HOW DOES NORMAN’S GUEST TAX COMPARE TO OTHER CITIES IN OKLAHOMA?
The comparison chart shows Norman’s proposed Guest Tax rate is in line with other cities in Oklahoma that attract visitors for events and overnight stays. The proposed rate helps to ensure visitors contribute fairly while keeping Norman competitive as a destination.
ARE LONG-TERM RV RESIDENTS SUBJECT TO THE TAX?
No. Visitors to Norman who stay in an RV for more than 30 consecutive days are considered “permanent residents” and would be exempt from paying the Guest Tax.
This exemption also applies to all visitors who stay in hotels, motels or other short-term rentals like Airbnbs or VRBOs for more than 30 consecutive days.
All Norman residents are always exempt from paying the Guest Tax – even when staying in a hotel, RV or other short-term rental.
HOW CAN I LEARN MORE?
Contact the Department of Parks & Recreation at 405-366-5472 with questions or write into PublicAffairs@Normanok.gov.
WHAT TYPES OF RVs WOULD BE INCLUDED?
The ordinance defines recreational vehicles broadly to include motorhomes (Class A, B, and C), towable trailers, campers, and truck campers that are designed for recreational use.
HOW MUCH REVENUE DOES THE GUEST TAX GENERATE?
WHY IS THE CITY CONSIDERING CHANGES TO THE GUEST TAX RIGHT NOW?
The proposed changes are intended to modernize the ordinance, ensure fairness across lodging types, and address our growing need for parks, public arts, and tourism-related amenities as interest in Norman continues to grow.
If Proposition 2 is approved, the updated Guest Tax would take effect on July 1, 2026 - ahead of the fall football season. As an SEC City, Norman is expected to see increased overnight stays tied to major athletic events, making the timing of this change particularly important to ensure visitor-related impacts are helping support community amenities.
HOW DOES NORMAN’S GUEST TAX COMPARE TO OTHER SEC CITIES?
Norman’s proposed Guest Tax rate is similar to what many other SEC cities already charge.
Cities that host major college sports and large events often use guest taxes to help pay for parks, public spaces, and tourism-related amenities. The comparison charts show Norman’s rate would be competitive but not unusually high when compared to other SEC cities.
WHY IS THIS TAX REFERRED TO AS "OTHER PEOPLE'S MONEY?"
Because the Guest Tax is paid by visitors staying overnight in Norman, it represents revenue generated largely from outside of our community. This allows the City to fund parks, arts, and tourism-related amenities using “other people’s money” helping to preserve and enhance our local assets without relying on taxes paid by Norman residents.
WHAT ABOUT CENTRAL LIBRARY?
Norman Public Library Central was constructed by the City of Norman and opened in 2019. It was funded through a dedicated sales tax, not Guest Tax.
Norman Public Library Central, one of three libraries operated through Pioneer Library System in Norman, was closed for mold remediation in Fall 2023. Following months of remediation efforts and inspections to determine the root of issues, indefinite closure was announced by the City in Spring 2024. Equipped with a better understanding and extent of issues, City of Norman legal counsel worked to convene parties involved with the building’s design and construction in hopes of reaching resolve in terms of full remediation and reopening through outside counsel. In Fall 2024, after unsuccessful voluntary mediation efforts, the City of Norman filed a lawsuit against defendants Flintco, MSR and ADG. This lawsuit is ongoing. The court has placed this case on the December 7, 2026, trial docket. The City of Norman stands with community members in wanting to see the Norman Public Library Central building reopen as quickly as possible, while recognizing that legal matters can often take time. Mediation scheduling efforts continue in hopes of reaching faster resolve. As further details become available for the public, they will be shared to this webpage at Normanok.gov.
WHAT HAPPENS IF THE VOTE DOES NOT PASS?
The Parks and Recreation Department, as well as community partners VisitNorman and the Norman Arts Council, would maintain current levels of funding if the proposition does not pass. While increasing the guest tax would help create an independent capital source of funding for the Parks and Recreation Department so other City departments would have a larger pool of funding to pull from for other city-wide capital projects as Norman continues to grow, essential services and programs would continue to be prioritized.
ARE THERE RULES CONCERNING HOW GUEST TAX CAN BE SPENT?
Yes. Voters approved the tax in 1980 to be “used exclusively for the purpose of encouraging, promoting and fostering the convention and tourism development of the City. Uses in parks development and in promotion of arts and humanities are thus contemplated." This is outlined in Section 12-521, Norman Municipal Code. Legally, expenditures from the Transient Guest Room tax must be used for those purposes.
If City Council desired to change the purpose for which transient guest room tax revenues could be used, it would require posing such a question to the voters.
WHAT ABOUT THOSE IN THE SHORT-TERM RENTAL INDUSTRY IN NORMAN?
As of Spring 2026, Norman business licensing shows 418 active short-term rentals (AirBNBs/VRBOs) and 22 active hotels/motels in our community. The active short-term rental market has expanded greatly in recent years, as Norman amenities continue to expand, with 96 active in Fiscal Year 2021 and nearly 400 active in Fiscal Year 2025:
- FYE 25: 387
- FYE 24: 271
- FYE 23: 190
- FYE 22: 155
- FYE 21: 96
City leadership works to maintain productive relationships with tourism industry professionals through daily operations and involvement with VisitNorman, our Convention & Visitors Bureau, and the Norman Chamber of Commerce. Leading up to the approval of the April 7th election, general support was expressed by many in the tourism and short-term rental property industry as these community members have shared they are committed to enhancing tourist experiences and quality of life items in Norman. Much like a cleaning fee or administrative fee, the Guest Tax rate is passed through to visitors staying in short-term rentals by owners or managers that can change rates or business models to the degree they see fit.
Information pertaining to short-term rental establishment in Norman can be viewed here.