Lodging Tax Quick Facts

Posted September 24, 2024

On the November ballot, there’s a referendum to implement a 1% lodging tax in Houston County to fund parks and recreational facilities. This tax will be paid by visitors staying in hotels and Airbnbs—not by local residents.

When you travel to places like Panama City or Atlanta, you pay their lodging taxes, which fund their parks and programs. It’s only fair that visitors to Houston County do the same.

The tax is expected to raise over $500,000 annually, which can only be used to improve parks and facilities and for economic development (jobs). The county plans to borrow against future revenue for immediate park upgrades, with more improvements to follow and funding for economic development activities once the debt is repaid.

By law, all funds must be used for recreation and economic development. Using funds for other purposes would be illegal.

Funding Proposal

Youth Sports Facilities: $2,631,000

  • $2,026,000 – Improvements to Youth Sports Facilities in Ashford, Cottonwood, Rehobeth, & Wicksburg
  • $607,000 - Assistance with Track & Field Complex in Dothan

Other Park Improvements: $667,000

  • $200,000 – Assistance with Pickleball Courts in Dothan
  • $174,688 – Recreation/Park Improvements in Taylor
  • $168,022 – Recreation/Park Improvements in Kinsey
  • $148,020 – Recreation/Park Improvements in Cowarts
  • $121,586 – Recreation Improvements in Webb
  • $54,682 – Recreation/Park Improvements in Columbia


FAQ

Q: Why aren’t all Houston County towns included? 

Originally, we requested a 1.5% countywide lodging tax but were informed that only 1% would be approved by the legislature. Because of this, we had to reduce both the contributions and the number of funded projects. However, all of Houston County remains eligible for future funding.

Q: Why is money being spent on projects in Dothan?

Dothan, like all towns, is part of Houston County, and most of the tax revenue will come from its hotels. It's only fair that a significant portion of the funds be spent within the Circle City.

Q: How is money being given to Wicksburg when it is not a town?

Funds won’t be given directly to Wicksburg or the Wicksburg Youth Sports Organization. Instead, Houston County will oversee the project, verify the work is completed, and handle payment for the park improvements.

Q: Why is more money being given to Wicksburg than towns that are incorporated?

The funds are being used for youth sports facilities that support year-round activities like football, basketball, softball, baseball, and cheer. Outside of Dothan, year-round sports are already taking place in Ashford, Cottonwood, Rehobeth, and Wicksburg. The money is following the children, not the towns.

Q: How do we know the money won’t be spent entirely on economic development in the future?

The public will not support that. Although the county’s tobacco tax isn't legally required to be spent on senior citizens and volunteer fire departments, it always has been. Changing this would be politically difficult, just as it would be hard to cut funding for youth sports programs. In the future, 10%–20% of the funds will go toward economic development to bring better jobs to Houston County, which will, in turn, increase demand for hotel rooms. By investing in economic development, we ensure the hotels paying the tax also benefit, while securing the county’s economic future.
 

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