August eyed for half-cent tax collection

TUSCUMBIA -- Colbert County commissioners will take the first vote Tuesday that could result in a half-cent sales tax increase in the Shoals that would help the area compete for economic development projects.

Their counterparts in Lauderdale County will take up the issue at their June 25 meeting.

If both bodies approve, the additional half-cent sales tax collection will begin Aug. 1.

Money from the additional tax, which officials expect to generate between $5 million and $6 million annually, will allow the Shoals to meet financial obligations made in the recruiting of an industry, which has become known as Project Tiger.

The project, which involves at least 1,500 jobs, involves a boxcar manufacturer.

Colbert County Commission Chairman Rex Burleson said the two commissions are coordinating their votes so the tax increase will take effect at the same time in both counties.

All of the money collected must 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.

Burleson said the incentive fund is not exclusively for "Project Tiger." He added the money also will be used for incentives to lure future projects as well as helping expand and develop industrial parks and provide infrastructure needs related to economic development.

He said the fund should provide enough money so officials will not have to ask taxpayers for more later.

Lauderdale County Commission Chairman Dewey Mitchell said attorneys from the two counties are working to ensure that the counties pass resolutions that contain the same language.

"If we can get everything worked out and if it passes (in Colbert County) on the 19th, we hope to be able to put it on our agenda for consideration on the 25th," Mitchell said.

The Colbert County Commission meets in a work session at 5 p.m. Tuesday. The regular meeting follows in the commission room on the first floor of the courthouse.

Russ Corey can be reached at 740-5738 or russ.corey@timesdaily.com.