Gulf Shores Lodging Tax Increase

This past December the Gulf Shores city council voted unanimously to increase its lodging tax by 3%. The increase will be phased in over two years, with 2% going into effect on September 1st this year, and an additional 1% going into effect on September 1, 2023. This increase brings the total lodging tax to 16%.

Originally the 3% increase was set to go into effect sooner. However, after hearing concerns from local vacation rental companies, the Gulf Shores City Administrator recommended a phased-in approach rather than increasing it all at one time. Concerns voiced by rental companies included the fact that many reservations have already been made for Spring Break and Summer 2022.

The increase is expected to raise $7 million annually, which is intended to help local infrastructure better handle the impact of record tourism numbers and the single-family housing boom. It will also be applied toward the 10-year capital improvement plan that includes approximately $84 million for transportation projects. Those projects include adding an additional lane to a portion of Hwy 59, rerouting a section of Canal Road, and adding a new pedestrian bridge. (see article here for more info on the Gulf Shores pedestrian bridge)

Gulf Shores Mayor Robert Craft said, “We represent everyone who lives in this city, and that means the people who live here, people who work here, and those who own businesses here. It was clear to me, personally, that we were getting out of balance a little bit. We needed to balance out particularly the traffic impact and the public safety access points.” He added, “We appreciate the tourism industry. We understand … this wasn’t popular. We are all in this together and we are doing the best we can up here to represent everyone and keep a balance here and keep (Gulf Shores) a place where we want to live, and people will want to visit.”