Foley lodge tax increase is queried

By CATHY HIGGINS Onlooker Editor onlooker@gulfcoastnewspapers.com
Posted 8/22/13

FOLEY, Ala. — The city of Foley’s upcoming lodging tax increase on Oct. 1 has raised some questions from a resident hotel owner.

During Monday’s regular City Council meeting, America’s Best Inn & Suites owner Pankaj Patel voiced his …

This item is available in full to subscribers.

Subscribe to continue reading. Already a subscriber? Sign in

Get the gift of local news. All subscriptions 50% off for a limited time!

You can cancel anytime.
 

Please log in to continue

Log in

Foley lodge tax increase is queried

Posted

FOLEY, Ala. — The city of Foley’s upcoming lodging tax increase on Oct. 1 has raised some questions from a resident hotel owner.

During Monday’s regular City Council meeting, America’s Best Inn & Suites owner Pankaj Patel voiced his concern over their recent vote to increase the city’s lodging and rental tax from 4 to 7 percent for lodging inside the city limits and from 2 to 3.5 percent inside police jurisdiction but outside city limits. That concern was that he and the majority of hotel owners that he knew of were just made aware of the vote. Patel also asked the council why a representative from the lodging community wasn’t consulted in the process.

“Somebody dropped the ball on that one,” Council President Wayne Trawick said.

Patel did say that one fellow hotel owner was aware of the council’s tax-increase consideration. However, they went out of town without sharing it with the other business owners. When Trawick questioned that, Patel explained that he and his fellow hotel owners and managers used to meet on a regular bases but that had not occurred in a while.

Patel added that he felt the tax increase would negatively impact his business in the short term.

“We are going to be affected immediately,” he said, adding that when neighboring municipalities raised their lodging tax, snow birds began staying in Florida.

According to the America’s Best website, Patel’s hotel, which is located on Alabama Highway 59, currently has room rates ranging from $59.95 to $109.95, depending on the size and day of the week. In addition, the site indicates that the hotel is booked up on several dates through the remainder of August and in September.

The council explained to Patel that they had followed advertising and voting procedures in making the tax increase, which are intended to help fund city infrastructure improvements that would pave the way for Blue Collar Destination and such projects as the sports complex.

“We do need these projects,” Patel said, asking that the council include a lodging representative in such future considerations.