Lauderdale votes to implement tax hike

FLORENCE -- Lauderdale County Commissioner Larry Irons said Monday's action by the commission sends a message that the Shoals is open for business.

The commission joined the Colbert County Commission by passing a half-cent sales tax increase. The proceeds from the tax increase will be set aside for economic development.

The Colbert County Commission approved the tax June 19.

The tax increase, which will take effect Aug. 1, will generate an estimated $6 million a year.

"I've talked to a lot of people, and everyone agrees (a sales tax) was the best way to fund this,'' said Commissioner Ronnie Brown.

Brown said that when it comes to economic development "you're either going forward or backward.'' He said the action shows the Shoals is ready to move forward with economic development.

The resolution was approved 3-1 with commissioners Brown, Irons and D.C. Thornton voting in favor of the measure.

Commissioner William Smith voted against the resolution.

Smith said he supports economic development but he was opposed to passing on a sale tax increase without the vote of the people.

He said he would have liked the county to use the TVA in-lieu-of-tax money, which is estimated to be about $400,000 a year for the two counties, for the economic development fund.

"A sales tax should be the last resort,'' Smith said. "I respect the vote of my fellow commissioners but my stance has been and will be that the people should vote on a tax increase.''

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.

Area officials say the money is a must in trying to lure a boxcar company that is looking to locate in the Shoals.

The company would employ 1,500 to 1,800 workers.

Thornton, who was appointed as the commission's selection to the Shoals Industrial Development Committee, said incentives are the only way to lure industry into an area.

"We've got to provide jobs for our people,'' Thornton said.

Irons said this economic development program is going to "change the face of the area forever.''

"I think this is an opportunity (for economic development) that we can't pass up,'' Irons said.

In unanimous action, the commission: