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Virginia Beach's Hotel Tax Hike Undecided

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A hotel facing the ocean in Virginia Beach.
http://www.flickr.com/photos/pandora_6666/2944292362/
A hotel facing the ocean in Virginia Beach.

A proposed hotel tax hike in Virginia Beach is up in the air, and so is a decision to build a sports stadium, which is what those extra tax dollars might fund.

The tax increase is included in a draft report that is expected to be presented to the City Council Tuesday. With it, hotel tax would be increased by 1 percentage point to 14 percent.

That could help lessen the financial burden of building an 18,000-seat arena near the oceanfront. Though lawmakers are hoping for a return on their investment that the stadium would attract an NBA or NHL team to town.

Sports and entertainment company Comcast-Spectacor has agreed to pay $35 million toward the arena's construction costs.

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