BESSEMER, Alabama — A proposed 3 cent increase in Bessemer’s lodging tax will keep customers away in an already sluggish economy, Bessemer hotel owners told city leaders in a recent meeting.
But city leaders say Bessemer needs the additional revenue.
Currently, the city’s total lodging tax is 14 percent, with 3 percent going to the city. The proposed increase would raise the lodging tax to 17 percent, which would bring it almost in line with Birmingham’s 17.5 percent.
But Neal Soni, owner of the Holiday Inn Express in Bessemer, told the council that he worries the increase would force potential customers to bypass Bessemer hotels in favor of those in neighboring Hoover. Hoover collects a 14 percent lodging tax.
Rupesh Patel, owner of the Hampton Inn, said occupancy rates are already down and rates have already been reduced. He urged officials to wait until the economy rebounds before moving to increase the lodging tax.
City Council President Jesse Matthews said officials would continue to discuss the issue, but that it may be necessary at some point to raise the tax for additional revenue.
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