Hoover Council considering lodging tax increase

The Hoover City Council is considering an increase in the municipal lodging tax. (File)

The Hoover City Council is considering an increase in the municipal lodging tax. (File)

By MOLLY DAVIDSON / Staff Writer

HOOVER—The Hoover City Council will vote on a proposed lodging tax increase that could generate $1 million in additional revenue for the city during a July 20 meeting.

The council heard a first reading of the proposed tax increase during a July 6 meeting.

If passed, the municipal lodging tax would increase from 3 percent to 6 percent, increasing the overall lodging tax from 14 percent to 17 percent, Hoover Councilman John Lyda explained.

Currently, Hoover’s 3 percent portion of the lodging tax generates around $1.2 million for the city per year, Lyda said. If the increase is approved, that amount could grow to $2.4 million each year.

If approved, Hoover’s 6 percent municipal lodging tax would exceed that of neighboring Pelham and Vestavia Hills, which both have a 3 percent municipal lodging tax. However, it would match nearby Homewood, which also has a 6 percent municipal lodging tax.

According to the tax ordinance, Ordinance No. 15-2275, revenue generated from the proposed 3 percent increase will be used for capital projects or to “retire debt associated with” capital projects, Lyda said.

“Of the six percent hereby levied, three percent shall be allocated and utilized by the city only for capital projects and/or debt service related to capital projects,” the ordinance reads.

Lyda said revenue generated by the proposed tax increase will likely be used “primarily for sports and recreation facilities.”

The Hoover Board of Education is currently considering selling the city the old Berry High School property on Columbiana Road, Lyda said. If the sale happens, Lyda said there are plans to use the property for sports and recreation facilities.