Politics & Government
Hoover To Raise Sales And Use Taxes, Lodging Fees
The Hoover City Council approved an increase in sales and use taxes and lodging fees to raise city funds.
HOOVER, AL - Speculation has swirled for several weeks around the proposed increase in sales tax and lodging fees in Hoover. Last week, the Hoover City Council finally approved a resolution to move forward with those tax increases.
According to a report by the Hoover Sun, the council voted 4-3 to approve three tax increases that city officials estimate will bring in $11.2 million more in revenue each year but voted down a fourth tax increase that would have generated about $1 million more.
In June, Hoover mayor Frank Bocato proposed the sales and lodging tax increase to offset a looming budget crisis for the city.
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Hoover Mayor Proposes Sales, Lodging Tax Increase
The council offered an alternative to the mayor's proposal two weeks later, with a proposal that would raise the city's portion of sales and use taxes to 3.5 percent instead of 4 percent and put the overall sales tax rate in Hoover at 8.5 percent in Shelby County and 9.5 percent in Jefferson County.
Find out what's happening in Hooverfor free with the latest updates from Patch.
In its recent meeting, the council agreed to increase Hoover’s sales tax rate from 3 percent to 3.5 percent, which will put the overall sales tax rate at 8.5 percent in the Shelby County part of Hoover and 9.5 percent in the Jefferson County part of Hoover. This tax increase will go into effect Oct. 1 of this year. As well, Hoover’s tangible personal property tax will increase from 3 percent to 3.5 percent.
The measure also adds a $2 nightly room fee for lodging facilities in Hoover instead of increasing the city’s lodging tax from 3 percent to 6 percent (or 14 percent to 17 percent including state and county taxes). This room fee will go into effect Jan. 1.
The City of Hoover could finish the 2018 fiscal year in some serious debt, according to a financial consultant hired by the city. The council heard a report in April from Jim White, a consultant with Birmingham's Porter, White & Co., and learned the city could be facing a $2.8 million deficit by the end of the fiscal year.
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Photo by Michael Seale/Patch
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