Hotel tax increase considered to fund water taxis

A proposal for a hotel tax increase would help The Woodlands fund the water taxis for the next three years. The Water Taxi Ad Hoc Committee recommended the plan to increase the hotel occupancy tax. The current hotel tax rate in The Woodlands is seven cents. Under the proposal, the rate would increase by one cent next year, and two cents in 2012.

Officials says the hotel tax increase would create an additional $500,000 in funds.