MOBILE — The Mobile City Council approved a 2% lodging tax increase, bringing the tax to 10%.
The tax applies to all hotels, short-term rentals, bed & breakfast businesses, tourist camps, cabins or any accommodations for transients.
According to the ordinance, 37.5% of the lodging tax's total revenues will go to Visit Mobile for the next five years, and 2% will go to the convention facility for building, marketing, operating and financing.
An amount equal to 2% of four-fifths of the lodging tax revenues will go to the capital improvement fund.
An amount equal to 100% of one-fifth of the revenues will go to the Mobile Airport Authority for operations at the Mobile International Airport. That breakdown will mean $1 million in fiscal year 2025, $2 million in fiscal year 2026, $2.5 million in fiscal year 2027, $3 million in fiscal years 2028 through 2035 and $500,000 in fiscal year 2036.
An amount equal to one hundred 100% of one-fifth of the revenues will go to debt service for the Mobile arena.
The remaining revenues will go to the city's general fund.
The lodging tax for the City of Birmingham is 6.5%, Montgomery is 11%, and Huntsville is 9%. Additionally, tourists pay county and state lodging taxes.
Councilman C.J. Small was not present at the meeting, and Councilman Ben Reynolds was the only "no" vote for the lodging tax.
City council members have been discussing the measure for weeks to get a clear understanding of the proposal.
Along with the tax increase, the council approved the Mobile Tourism Improvement District (MTID) renewal.
All council members in attendance voted to approve the MTID.
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