Commission expected to vote today on tax

FLORENCE -- The Lauderdale County Commission is expected to vote on a resolution today that would levy a half-cent sales tax for economic development.

"If the sales tax is going to become effective Aug. 1, the commission will have to vote on it today,'' said Commission Chairman Dewey Mitchell, who doubles as the county's probate judge.

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

Area officials say the money is a must in trying to lure a boxcar company that is considering locating in the Shoals. The company would employ 1,500 to 1,800 workers.

"This is a golden opportunity for economic development in this area,'' said Commissioner Larry Irons. "This is something we can't afford to pass up.''

Irons said that the increase is "on sales taxes only."

The Colbert County Commission, by a 5-1 vote, approved the half-cent sales tax at its June 19 meeting.

The Lauderdale Commission must pass the resolution for the tax to be levied in both counties.

Lauderdale County Attorney Chris Smith said that in the legislative act giving each county the authority to issue the tax increase, it is clear that both counties must start collecting the tax on the same date.

"So, if the sales tax is going to begin Aug. 1, we've got to act on it now,'' Mitchell said.

County officials said the company that collects the county's taxes needs at least 30 days from the end of the month to make the necessary notifications.

Area officials estimate the half-cent sales tax will bring in $6 million a year for economic development in the two counties.

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