Liberal Democrat Cllr Christian Vassie said a £2.80-a-night visitor levy could raise up to £5 million-a-year which could also subsidise bus services from York to neighbouring villages and improve cycling routes.
Cllr Vassie told the Local Democracy Reporting Service (LDRS) backers of the tax should be upfront about what they wanted to use the money for to help sell the idea.
The Wheldrake ward councillor, who previously held the culture and leisure and transport briefs on York Council’s executive, is among those who have said they would support charges on visitors.
He has joined York and North Yorkshire Mayor David Skaith and York Central MP Rachael Maskell in backing a levy amid debate about its effect on the local tourism industry.
Supporters of the tax, which would see visitors pay additional fees charged on top of nightly hotel bills, say earnings could be invested into York’s tourism offering and fund public services.
But some hotels, the Hospitality Association York industry body and others have warned it could harm businesses already facing rising costs and put tourists off.
The Government has said it has no plans to give local authorities in England the power to introduce the charges.
A levy of five per cent on hotel bills is set to launch in Edinburgh in July and a £1-a-night charged has been enacted in Manchester using legal workarounds.
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Cllr Vassie said supporters of the levy were not being clear enough about what they want to use the money for which was leaving some sceptical.
He added his suggestion of a free city centre electric shuttle bus would help both residents and tourists get around York and to and from its attractions.
The council conducted a study into launching a shuttle bus service in 2023, estimating at the time it would cost around £350,000-a-year to run primarily for Blue Badge holders.
Cllr Vassie said a tourism tax should also help move away from indirectly charging visitors through parking fees, with buses offering an alternative way to get to York.
The councillor said: “Successive councils of all political parties rely on people gridlocking the city with their cars in order to fund public services.
“For residents, a shuttle bus means being able to get to public transport connections with their heavy shopping, or to allow people living north of York to get to villages south of York, to work or to visit friends.
“It means people with mobility problems can catch a bus into town and then have a service to get them to the theatre or the cinema or the pharmacist or bank.
“For tourists, it means being able to get from the station to their hotel with their heavy luggage.
“Why should only tourists who use cars pay to help fund services? Why should residents who have no alternative to using their cars be penalised? How do we fund giving rural residents viable alternatives to their cars?
“A tourism tax could play a vital part in making things better.
“I know there will also be calls to use some revenue to improve keeping the city centre clean, to collect refuse, and more.
“Let’s draw up a funded list and sell the idea to the city.”
The call comes as York Council’s Leader Coun Claire Douglas and economy spokesperson Coun Pete Kilbane have both said work remains ongoing to try and introduce a levy.
Coun Douglas said a council Budget consultation in which 80 per cent of respondents said they supported a tourism tax in principle showed the proposal had strong public backing.
Coun Kilbane said they were lobbying the Government to get the powers to levy charges so the council could control how the money is spent.
Charges have been introduced in Manchester and elsewhere by setting up accommodations business improvement districts (BIDS) who collect and spend the money.
