City joins sales tax holiday
Published 8:16 pm Wednesday, May 3, 2006
By By MARY-ALLISON LANCASTER – Managing Editor
Brewton City Council members Tuesday approved a measure that would increase the opportunity for taxpayers in the city to save money by waiving the city's local sales tax during three days in August each year.
Gov. Bob Riley last week signed into law legislation that creates Alabama's first statewide sales tax holiday for back-to-school shoppers.
Mayor Ted Jennings on Tuesday recommended the City of Brewton follow suit.
Jennings said state officials recommended municipalities willing to comply with the sales tax holiday pass it now, even though it doesn't become effective until July.
The sales tax holiday - which will fall on the first Friday, Saturday and Sunday in August each year - is expected to save Alabama consumers $3.3 million annually.
The latest unemployment report shows Alabama with a 3.3 percent unemployment rate.
A 1-cent sales tax goes to city schools. Jennings said he had spoken with Superintendent Lynn Smith and was told by Smith the board would have no problems with the city's approval.
Riley called for instituting the sales tax holiday during his State of the State Address in January. It was sponsored in the House by Rep. Mac Gipson, who has introduced legislation to create a sales tax holiday for three years. Its Senate sponsor was Sen. Zeb Little, and the bill had the strong backing of the Alabama Retail Association.
The three-day sales tax holiday in 2006 will fall on August 4-6. It applies to: