Sales tax increase still to be considered
Published 2:00 am Wednesday, November 14, 2012
A one-cent sales tax could be approved at the next meeting of the Brewton City Council.
An ordinance was introduced during the council’s Tuesday meeting, but a vote for immediate consideration of the tax increase ordinance failed since a unanimous vote is required to consider any ordinance on first reading. Councilman Pat Poole cast the lone vote against immediate consideration of the ordinance.
If passed, sales taxes in Brewton would be a total of 9 cents with 4 cents going to the city.
City Clerk John Angel said the ordinance would be presented at the Nov. 27 meeting of the council to be considered again.
“At that presentation, a vote will be taken to adopt the ordinance raising the city sales tax,” Angel said. “A unanimous vote won’t be required then, only a majority of the council will have to vote to approve the ordinance.”
If the ordinance passes Nov. 27, the ordinance would be in place to see a one-cent increase in the city sales tax beginning January 2013.
Angel presented documentation on the breakdown of revenues from current and proposed sales tax amounts.
“With the current sales tax at 3 cents for the city, that gives the city an estimated revenue of $3,757,888,” Angel said.
Of that $1,252,504 — or one cent — currently goes to fund the Brewton City School System. The general fund receives $2,102,351 with the Sewer Disposal Plant Fund receiving $313,033.
Under the proposed increase in sales taxes, the city would see an increase in the estimated revenue for the city. Under a 4-cent sales tax, the estimated revenue would increase to $4,810,513. With the schools continuing to receive the one-cent already allocated for that purpose, they would then receive $1,202,630. The general fund would see an increase to $3,105,670 with the sewer disposal plant fund receiving $502,218.
The ordinance will come up for a vote during a regular meeting of the council, which begins at 4:30 p.m. each second and fourth Tuesday of the month. The meetings are open to the public.