Reviewed by: Caleb Turrentine
1% lodging tax approved for new Von Braun Center expansion
Reading time: 3 minutes
Two significant measures were taken by the Huntsville City Council Thursday, July 9, regarding the city’s downtown expansion project. The Council approved a 1% lodging tax and a tax increment financing (TIF) district designed to fund a major expansion at the Von Braun Center and other infrastructure projects in the downtown area.
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What is the TIF district?
A tax increment financing (TIF) district is nothing new to the city, nor is it a new tax for citizens. the City of Huntsville has used TIF districts since 2000 to help finance public infrastructure and redevelopment projects.
TIF districts capture revenue stemming from future growth in property tax revenue generated by new development within the district. Property tax rates are not increased and funding for schools is not reduced.
Known as TIF 9, this particular measure will provide approximately $200 million for capital improvements at the VBC and $20 million for four other projects. By law, the infrastructure projects will be implemented within five years.
These include:
- Von Braun Center: Construction of more than 100,000 square feet of new event and exhibit space similar in size to South Hall, along with new meeting rooms, conference and exhibit space, upgraded parking and other improvements
- North Huntsville Beltline Greenway: Design and construction, including right-of-way acquisition along with amenities such as lighting, landscape, hardscape and safety equipment.
- New Mill Creek Park (Choice Neighborhood Redevelopment): Design and construction of a new public park as part of the Mill Creek project, enclosing a drainage channel, installing park equipment and adding landscaping and lighting.
- Lowe Avenue: Road and pedestrian upgrades to support increased traffic and the relocation of Huntsville Junior High School.
- Renovations to former federal courthouse: Interior and ADA improvements to the historic Holmes Avenue building for future use by the Madison County Commission.
The TIF district covers almost 3,700 acres.
What about the 1% lodging tax?
The Huntsville City Council also approved an ordinance to create an additional 1% lodging tax. The revenue from the tax will be allocated to the expansion of the VBC.
The tax has the support of the Huntsville/Madison County Convention & Visitors Bureau as well as other hospitality industries.
Like the TIF, this is not an additional mandatory tax on citizens, but rather an extra tax on visitors to the area.
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