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Sales-tax increase moving forward


By Tom Smith
Senior Staff Writer

Published: Tuesday, June 12, 2007 at 3:30 a.m.
Last Modified: Monday, June 11, 2007 at 11:00 p.m.

FLORENCE -- Lauderdale County commissioners Monday instructed their attorney to begin proceedings to implement a countywide half-cent sales tax for economic development.

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Authority to implement the tax was given to the commission through a legislative act signed by Gov. Bob Riley last week.

The half-cent sales tax increase, along with a similar measure in Colbert County, is being imposed to help the Shoals compete for a major industry that will bring at least 1,500 jobs.

"AlaTax needs at least 30 days from the end of the month to make the necessary notifications that will allow them to collect the tax,'' said Commission Chairman Dewey Mitchell.

AlaTax is a private tax collection company that collects sales taxes in Lauderdale County.

"If we want to put this (sales tax) in place by Aug. 1, (AlaTax) has to have all the information by July 1,'' said County Administrator Jenoice Bevis.

Commissioner D.C. Thornton suggested that county Attorney Chris Smith work with Colbert County Attorney James Patton to coordinate resolutions that would result in simultaneous implementation of the sales tax increase.

For the additional sales tax to be collected, both commissions must now pass resolutions to begin the collection. The resolutions must state when tax collections will begin.

Mitchell said Colbert County commissioners are expected to pass a resolution to implement the sales tax increase at their June 19 meeting.

"We need to move forward with this as quickly as possible,'' added Commissioner Ronnie Brown.

Commissioners instructed Smith to develop a resolution for the commission to discuss and vote on by their next meeting June 25. If approved, that would give the tax collection company enough time to implement the increase by Aug. 1.

The tax hike is expected to generate between $5 million and $6 million a year.

All of the money collected will go into a fund to be used exclusively for economic development purposes. A group of elected officials, known as the Shoals Industrial Development Committee, must approve all expenditures from the fund.

In other action, the commission unanimously:

  • accepted a bid of $235,315 from Thompson and Fisher Inc. to complete renovations making the courthouse handicapped accessible.

  • approved installing signs at the St. Florian and Greenhill community centers.

  • accepted a bid of $1,720 from Osteen Tile and Marble to install a new ceiling in the meeting room of the highway department.

  • agreed to purchase a Ford F-450 truck chassis for the highway department at the cost of $25,288.

  • approved paying $480 for training for a school resource officer. The commission and the school system share the cost of the SROs.

  • agreed to purchase two air packs from Florence for $400.

  • approved bids from Alabama Guardrail, of Pinson, to supply materials for the highway department, and Mitchell Printing and PSI for various county printing jobs.

    Tom Smith can be reached at 740-5757 or tom.smith@timesdaily.com.


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