DAPHNE — People renting rooms in Daphne will pay an additional $2 a night under a plan to raise funds for the city.

The Daphne City Council voted Monday, Aug. 15, to approve the change in the city’s lodging tax rate. Mayor Robin LeJeune said the new ordinance does not change Daphne’s standard 6% lodging tax rate.

“The council is putting in a $2 occupancy fee per room,” LeJeune said. “It's a new thing, but it's not changing the actual lodging tax. What it does is add $2 per room.”

Revenue from the current 6% tax is divided into separate funds, but the council will decide how to use the money from the new $2 fee, the mayor said.

“It will go into the lodging tax account, but it won't go through the lodging tax fund where it breaks apart by percentage,” LeJeune said. “It will be set aside for the council to determine what they want to use that for.”

Under city law, the current 6% tax is split with 53% being used for recreation, 32% for bay-front uses, including acquiring, developing and maintaining bay-front property, according to the ordinance.
The rest of the income is divided between 10% for the Industrial Development Board and 5% for Daphne Downtown Redevelopment Authority, the ordinance stated.

LeJeune said money from the new fee could be put to other uses, such as projects being planned by the city.

“We've got a lot of large projects throughout, such as the animal shelter. We've got our Justice Center expansion, the amphitheater,” LeJeune said. “We’re always actively looking for grants but in case we have to go out and borrow, this is just going to be one of those ways that they can use that money toward.”

Daphne officials have announced plans to replace the city’s current animal shelter on Johnson Road. A new shelter could cost $4 million, according to statements made at Daphne meetings in 2021.

The city is also working on plans to replace the Justice Center on U.S. 98 and to build a new amphitheater at Bayfront Park. The council voted in 2021 to apply money from a budget surplus to provide $1 million each for the animal shelter, Justice Center and amphitheater.

LeJeune said many cities are adding lodging fees to raise money for projects.

“It's going to be for if there's another bond or something like that they feel for the use. They'll be able to use that money or if there's a project or if there's something that they instead of raising the lodging tax decided to go this way. If you've traveled the country anytime recently, you're starting to see that pop up.”