SAN ANTONIO — Business leaders are pressing Bexar County to begin collecting a voter-approved hotel tax increase intended to help fund a new Spurs arena, saying delays could increase costs and slow the planned downtown redevelopment.
Voters approved Props A and B in November 2025, authorizing the county to raise its hotel tax from 1.75% to 2% and extend an existing rental car tax to help repay bonds for the arena.
The two taxes, collectively known as the venue tax, were projected to generate about $503 million over 30 years. About $311 million of that amount is expected to help finance the $1.3 billion arena.
Bexar County has not yet voted to implement the hotel tax increase, according to sources, raising concerns among business leaders who view the arena as a key component of the larger Project Marvel sports and entertainment district.
“The cost of indecision means delays, overthinking, expenses go up, lost time, lost value of money,” said Jeff Webster, president and CEO of the Greater Chamber of Commerce.
Webster urged county officials to begin collecting the revenue so the city and county can use it for the projects covered by the funding plan.
County Judge Peter Sakai said the county still needs to complete “necessary due diligence” before implementing the tax. He said county officials are working with bond counsel and have until one year after the November 2025 election to begin collecting it.
“We won’t put the cart before the horse,” Sakai said, adding that the county must protect taxpayer dollars and ensure it is on “solid footing” before making commitments.
Sakai previously supported the measures but has since expressed concerns about San Antonio’s plans for Project Marvel, which includes the proposed arena and other downtown developments.
The county is also preparing for its next budget cycle amid slower economic growth and lower-than-expected property tax revenue.
Meanwhile, Mayor Gina Ortiz Jones has proposed putting San Antonio’s share of the arena funding before voters in November. City officials are not legally required to hold such a vote, and most council members have opposed the proposal.
The Spurs arena is expected to anchor a broader downtown redevelopment plan. City Manager Erik Walsh previously estimated that designing and building the facility would take about 60 months once funding is approved.
Spurs Sports and Entertainment did not respond to a request for comment.