Gulf Shores approves lodging tax increase in phased-in approach

Baldwin County

GULF SHORES, Ala. (WKRG) — The city of Gulf Shores voted to increase the city’s lodging tax by three percent over the next two years.

Starting in the Fall of 2022 the tax will increase by two percent. The following September it will bump up again another one percent increasing the city’s lodging tax to a total of 16 percent by the Fall of 2023 and making it one of the highest lodging taxes on the gulf coast.

When fully implemented the increased tax is expected to generate $7 million annually. That money will be pumped back into the city for transportation projects, city park development, school construction, a training facility for the fire department and a new justice center for the police department.

“Our goal is to have a balanced fair approach and everybody needs to benefit from what we do here and to do that we had to make some tough decisions,” said Mayor Robert Craft after the meeting. “I believe we came to an equitable, good decision.”

A special City Council meeting heard the public’s opinion on the then-proposed change back in November.

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