Madison raises lodging tax rate, approves new hotel

MADISON – Madison now has a new tax rate for lodging. The Madison City Council heard a first reading at last Monday’s city council meeting to increase the city’s lodging tax rate to 10%. At a special called meeting on Wednesday, the council approved the increase.

The lodging tax rate was previously raised to 9% plus $2 per room per night in 2017 to pay debts incurred from building Toyota Field. According to the 2017 ordinance, 2% of revenue and $1 per room per night is allotted to debt service and ballpark warrants.

Now, the city council greenlit increasing the rate by 1%. The increased revenue would be dedicated to the City’s general fund while retaining the designation of 2% of revenue plus $1 per room per night to debt service and ballpark warrants.

“This ordinance slates the new revenues to go to the general fund, and so, it has some corresponding minor amendments to make sure that the dedicated portions of the lodging tax for the ballpark warrants and for Town Madison infrastructure only apply to the currently levied tax,” explained City Attorney Megan Zingarelli.

The ordinance will take effect on October 1, 2026.

At the same July 29 meeting, the council also approved a development agreement with Madison Hotels VI, LLC to build an Aloft Hotel by Marriott near Toyota Field.

“The council’s earlier decision to adopt an amended lease with BallCorps, LLC led to the SEC Softball Tournament announcement and increased interest in economic development in Town Madison,” said Mayor Ranae Bartlett. “With every new investment, we’re building an economy that works for our residents today and for the generations who’ll call Madison home tomorrow.”

The new hotel is expected to have 108 hotel rooms and help accommodate visitors for the 2027 SEC Softball Tournament held at Toyota Field.