By Alabama Public Radio
Mobile, AL – Alabama's port city has raised its city lodgings tax to help fund a cancer research institute that also got a $20 million federal appropriation. The Mobile City Council has passed Mayor Mike Dow's proposed hotel tax increase. Much of the tax revenue during the next 10 years will go for the city's pledge for the University of South Alabama's cancer research institute. Construction has not yet started, and USA is still trying to raise almost $113 million. The additional two percent lodgings tax will bring the city's rate to eight percent and the total tax rate inside the city to 14 percent. It's expected to raise more than $1 million a year and will take effect January 1. Meanwhile, U.S. Senator Richard Shelby says President Bush has signed a $20 million appropriation for the institute.