City's revenue report shows positive trends in sales and lodging taxes for 2023

During the recent Hoover City Council meeting on May 19, 2025, city officials provided a detailed update on the city's revenue streams, highlighting both positive trends and areas of concern. The report, presented by a city finance representative, covered revenue data through the first seven months of the fiscal year, offering insights into how various taxes are performing.

The most significant takeaway from the presentation was the overall increase in revenue, with sales and use tax and the Simplified Sellers Use Tax (SSUT) continuing to be the largest contributors. Sales and use tax is up nearly 2% compared to the same period last year, while SSUT, which includes online sales tax, has seen a more substantial increase of 12.5% year-to-date. Despite a slight dip in SSUT for April, attributed to a major marketplace facilitator not being included in the settlement, the overall trend remains positive.

However, the lodging tax has lagged behind, currently at 53% of expected revenue for the year. This is a concern as it indicates a slower recovery in tourism-related income, which could impact city services funded by these revenues.

Other revenue sources, such as real property taxes and gross receipts, showed variability. Real property taxes are up 3%, while gross receipts and franchise taxes increased by 3.1%. The finance representative noted that fluctuations in collections can occur due to the timing of payments, particularly for licenses and permits, which are expected to stabilize as new reminders are sent out.

In summary, the revenue update presented at the meeting reflects a generally positive financial outlook for Hoover, with key areas of growth in sales and online sales taxes. However, the city will need to monitor the performance of the lodging tax closely as it works to ensure a balanced budget and continued support for community services. The council's ongoing discussions about these revenue streams will be crucial in shaping Hoover's financial strategy moving forward.