Council debates lodging-tax rewrite tied to new arena financing; item held for further review

The Mobile City Council discussed a proposed amendment to the lodging tax ordinance (item 34-0004) that would increase the lodging tax calculation from 8 percent to 10 percent and change how the additional revenue is distributed among Visit Mobile, the Mobile Airport Authority (MAA), the Convention Center and arena debt.

Council staff presented a spreadsheet showing projected distributions under a reworked allocation. Scott Collins, a city staff member who delivered the spreadsheet, summarized the change: “The language … shows that it’s, going from 8 percent to 10% on the lodging tax.” Collins said the draft was reworked so Visit Mobile would receive 37.5 percent of the existing 8 percent share rather than 37.5 percent of the full 10 percent, and the Mobile Airport Authority would receive lower payments in the early years and be “made whole” over an extended period.

Why it matters: Council members tied the lodging-tax adjustment to financing for the new arena and to debt service for the Civic Center. Collins said the reworked…