Foley Council OKs lodging-tax hike

By CATHY HIGGINS Onlooker Editor onlooker@gulfcoastnewspapers.com
Posted 7/3/13

FOLEY — Gulf Coast visitors vacationing in Foley could soon pay a little more for their hotel rooms.

During its regular meeting Monday, the Foley City Council voted to increase its municipal lodging tax to 7 percent for lodging inside the city …

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Foley Council OKs lodging-tax hike

Posted

FOLEY — Gulf Coast visitors vacationing in Foley could soon pay a little more for their hotel rooms.

During its regular meeting Monday, the Foley City Council voted to increase its municipal lodging tax to 7 percent for lodging inside the city limits and 3.5 percent inside police jurisdiction but outside city limits.

During the council’s work session prior to the meeting, City Administrator Mike Thompson explained that Foley’s cumulative lodging tax totals 8 percent, with 4 percent each paid for lodging within the city limits and to the state of Alabama, and 2 percent paid by lodging outside corporate city limits by inside Foley’s police jurisdiction.

“Orange Beach and Gulf Shores have 11 percent,” he said.

In addition to lining up close to the neighboring cities, Thompson said the revenue from the increased tax could be used to fund the city’s multi-use sports complex on County Road 20.

“We’ve talked about being a little more competitive,” Council President Wayne Trawick said.

He provided three points in support of the increase, one of which was that the tax is actually funded by visitors to Foley instead of residents and businesses.

“And if we don’t pass a tax now, it won’t be done for years and years,” Trawick said.

Councilman Ralph Hellmich agreed.

“I look at it as kind of a service,” he said.

Because it amends the city’s current lodging-tax ordinance, Monday’s vote was the first of two. If passed at the council’s next meeting, the ordinance is expected to take effect Oct. 1 once procedures have been followed to notify the state of the change.