Hoover
Hoover City Council approves increases to sales, lodging, property taxes
The increases are estimated to bring in $11.2 million in revenue each year.
Hoover seal courtesy of the City of Hoover. Pennies photo by Jeanette E. Spaghetti/Flickr Commons.
The Hoover City Council approved a sales tax increase during its Tuesday night meeting, part of ongoing efforts to forestall looming financial troubles.
The Shelby County Reporter reports that the council voted in favor of a half-cent sales tax hike, which will go into effect on October 1. The measure passed by a narrow margin – 4 in favor, 3 against — with some councilors suggesting the matter be tabled until the city’s budgeting process was complete.
Also passing with a 4-3 vote was a measure to add a $2-per-night room fee for the city’s hotels and motels, as well as an increase to the city’s personal property tax, from 3 to 3.5 percent. The lodging fee increase will take effect at the start of 2019; the property tax raise is effective October 1.
In total, the three tax increases is estimated to bring in $11.2 million in revenue each year. The council voted against increasing the city’s rental and leasing tax from 1 to 2 percent, which would have generated $1 million more in revenue per year, officials said.
Read the full report at the Shelby County Reporter.
