Holyoke's 2.5% lodging tax for city recreation, proposed to run six more years to the end of 2032

Holyoke's tax on short-term stays is scheduled to stop at the end of 2026. Measure 2B would keep it at 2.5% through December 31, 2032. The ballot applies the tax to "THE LEASING OR RENTING OF ROOMS OR OTHER ACCOMMODATIONS IN COMMERCIAL LODGING FACILITIES BY SHORT-TERM VISITORS AND GUESTS" and ties it to "THE EXPENDITURES OF THE RECREATION PROGRAMS OF THE CITY OF HOLYOKE." A yes vote continues the tax for six more years. A no vote lets it expire as scheduled. Neither the ballot nor the city's notice states how much the tax collects in a year.

The question opens with the words "WITHOUT RAISING TAXES." The ballot prints it under the heading "Tax Reallocation," and the city's notice calls it "Referendum 2B"; the question moves no money between purposes and changes only the end date. The rate stays where it is: a $100 taxable lodging charge carries $2.50 in city lodging tax now and would carry the same through 2032. Sales tax is separate from this question. The Department of Revenue's January 2026 rate table lists sales tax rates in Holyoke of 2.9% for the state, 1% for Phillips County and 1.50% for the city. The question asks only about the lodging tax's term; it does not ask to let the city keep revenue above its limit under the Taxpayer's Bill of Rights.

The decision belongs to the City of Holyoke's registered voters, in Phillips County's November 3 mail ballot election. Holyoke School District RE-1J's Question 5A is on the same ballot; neither question depends on the other.

On May 19, 2026, City Clerk Mikey Brown asked the council for feedback on the lodging tax ballot question, "and if they wanted to increase and if they wanted to see another 5-year renewal term," according to the minutes. The council's August 18 agenda listed Ordinance No. 5-2026, titled as an extension of the city's lodging tax Ordinances No. 6-2016 and 4-2020.

The comments filed in favor, as summarized in the city's ballot notice, say a yes vote "would continue a 2.5% lodging tax to support a well-established year-round recreation program in Holyoke" and "does not increase any local sales or property tax." They say the tax "will be paid by hotel patrons" and that there is "no cost to local residents."

According to the comments, the program plans events for residents of all ages, covers interests beyond sports and runs through the year. They say that in 2025 the city's recreation department hosted over 20 events and reached 1,437 youths, and that events such as Showdown on the Plains and a youth baseball and soccer tournament brought in teams from the region. They credit the events with more activity at hotels, restaurants and stores. The notice states that no comments against the question were filed by the constitutional deadline.

The ballot notice reports the city's fiscal year spending, the figure the Taxpayer's Bill of Rights limits: $7,494,084 in 2022, $6,996,876 in 2023, $7,905,434 in 2024 and $7,325,885 in 2025. For 2026 it gives an estimate of $14,171,170. By the notice's count, spending changes by $6,677,086, or 89.10%, from 2022 through the 2026 estimate.

Spending in the four reported years fell from $7,494,084 in 2022 to $7,325,885 in 2025. The rise comes from the 2026 estimate, nearly twice 2025's spending, and the notice does not say what drives it.

The U.S. Census Bureau estimates Holyoke's population at 2,264 in July 2025, down from 2,347 in April 2020.