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The city of Clement levies a 5 percent tax on the base price of rooms provided by hotels and motels located within the city limits.

The city of Clement levies a 5 percent tax on the base price of rooms provided by hotels and motels located within the city limits. This year, the aggregate room price subject to tax was $33 million, so current year revenue was $1.65 million. Clements city council recently voted to increase the hotel tax rate to 6 percent for the next fiscal year. Compute next years hotel tax revenue assuming next years tax base equals the current year base. Compute next years hotel tax revenue assuming next years tax base decreases to $30 million. Compute next years hotel tax revenue assuming next years tax base decreases to $27 million.

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