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FY25 Local Revenue

Local revenue comprises 17.1% of the City's revenue budget in FY25, a $186.4 million increase over the FY24 budget.

Local revenue includes revenue from excise taxes, payments-in-lieu-of-taxes, licenses and permits, fees and fines, investment income, intergovernmental revenue, and available funds. The City collected $749.2 million in FY23, a 36.4% increase from FY22. In FY24, $599.1 million is budgeted for these sources. For FY25, the City is budgeting $785.5 million, anticipating that the local economy, and economically-sensitive revenue sources with it, will build on the current strength of the post-pandemic recovery.


Local receipts, or revenue the City is able to generate locally, include items like excise taxes, fees, fines, and permits. This vital revenue source generally follows the City’s overall economic health and is projected to increase by $186.4 million or 31.1% in FY24.

Although recent economic trends are encouraging, caution remains necessary due to geopolitical events and macroeconomic pressures. In FY25, the Finance Cabinet will continue to work with departments Citywide to review collections, understand revenue drivers, and maximize revenue recovery efforts.

The graph to the right shows the share of each category within this revenue source.

Recurring Local Receipts by Type

FY19-FY23 are actual collections, FY24 and FY25 are budgeted amounts.


An excise tax is a tax applying to a specific industry or good.

The largest excise tax collected for the City is the local room occupancy excise, levied on occupancy of hotel rooms, motel rooms, and short-term rental units. In addition to the local tax, the State collects a 5.7% excise tax and a 2.75% fee, transferred to the State’s convention center fund, for a total tax from all sources of 14.95%.

The FY24 budget was set at $116.0 million in local room occupancy collections. In the FY25 budget this amount is estimated to grow to $139.0 million. This increase reflects the continued post-pandemic recovery of the hospitality and tourism industries. 

Other excise taxes that have been affected by COVID-19 and that are likewise expected to make gains in FY24 include:

  • Meals - 0.75% local excise on meals
  • Jet fuel tax - 5% of the average sales price, but no less than five cents per gallon
  • Motor vehiclean excise in lieu of property tax on motor vehicles, $25 per one thousand dollars of vehicle valuation

See below a table with all excise taxes the City collects.

The table below LISTS all excise taxes levied in the City:
Categories FY23 Actual FY24 Budget FY25 Budget Difference in $ Difference in %
Room Occupancy $129,271,291 $116,000,000 $139,000,000 $23,000,000 19.8%
Motor Vehicle $59,834,716 $54,090,000 $59,700,000 $5,610,000 10.4%
Meals $37,669,911 $34,000,000 $38,000,000 $4,000,000 11.8%
Aircraft Fuel $49,639,023 $36,500,000 $40,000,000 $3,500,000 9.6%
Vehicle Rental Surcharge $1,124,536 $1,000,000 $1,350,000 $350,000 35.0%
Marijuana Excise $2,197,933 $1,750,000 $2,600,000 $850,000 48.6%
Condominium Conversion $917,000 $500,000 $450,000 $-50,000 -10.0%
Short Term Rental $648,814 $530,000 $700,000 $170,000 32.1%
Boat Excise $29,298 $30,000 $30,000 $0   
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