Franklin officials to vote on sales tax increase

RUSSELLVILLE -- Franklin County commissioners have set a vote for Monday to determine whether to pursue a 1-cent sales tax to enhance economic development in the county.

Officials with the Franklin County Development Authority have asked the commission to seek state legislation that would give them authority to approve a 1-cent general sales tax throughout the county.

The legislation is similar to bills being pursued by Colbert and Lauderdale counties. If approved, Lauderdale and Colbert residents would see their sales tax rate increased by one-half cent.

Mitch Mays, executive director of the development authority in Franklin County, said the money would be earmarked solely for industrial development. He added that all revenue and the projects funded by the money would be handled by a committee of elected officials, comprised of the mayor of each town in the county and one county commissioner.

Mays said the tax money would be used for industrial park infrastructure projects, engineering fees, incentives for businesses and to match grant money that might become available.

"A new tax is never a popular thing, but Franklin County is behind," Mays said. "We only have one industrial park that is ready to go."

The county industrial board recently purchased land for an industrial park on Alabama 243, and Phil Campbell has purchased land on U.S. 43 for a park. Neither

have infrastructure in place,-however.

County residents purchasing $100 worth of merchandise would pay an additional $1, if the tax is approved. In Russellville, the sales tax collected would increase from 8 to 9 cents on each dollar.

If the tax is implemented, Mays said the money would be used to prepare the parks ready for development. The ultimate goal, he said, is providing more jobs.

"This economic development fund would allow Franklin County to catch up with other counties," Mays said, making reference to proposed projects being considered for Barton in Colbert County and in Tupelo, Miss.

"The same incentives would be available for existing businesses that are looking to expand, Mays said."

Probate Judge Mike Green said the commission will vote on the issue at Monday's meeting.

"We have talked to representatives in all of the towns and they seem to be supportive of it," Green said. "I don't like taxes, either. In my opinion, though, it's what's best for the county."

The commission asked the development authority to speak with representatives from all of the incorporated towns and cities in the county to determine their interest in the sales tax increase.

Green said the commission has been unable to give all the local governments enough time to pass resolutions offering their opinion on the issue.

Vina Mayor D.W. Franklin said that town council passed a resolution in support of the tax because the town needs all the help it can get in filling a 400-acre industrial site.

"We are a small town, and we just don't have enough taxes to do the infrastructure at the park," Franklin said. "Maybe this would help us get some businesses in here."

Vina and Red Bay will be the closest sites to the new Interstate 22 when it is completed.

Mays said the new highway will make both towns attractive sites for businesses looking to relocate.

"The problem is the county doesn't have enough money to get our sites ready, and each city doesn't have enough money," he said. "This is the quickest way we can get our industrial parks ready."

Several potential projects in nearby counties have expedited the need to get the county's parks ready, Mays said.

"The kind of growth that we hope to see is something like we've never seen before," he said. "We are in a good location to get some of the businesses looking to move here, if we are ready for them."

If the commission approves the effort, local legislators will be asked to pass a bill authorizing commissioners to pass the tax.

"It's like we are standing on a diving board looking into the pool," Mays said. "We just have to decide whether or not we want to jump in or turn and walk away."

Jonathan Willis can be reached at 332-0140 or jonathan.willis@timesdaily.com.