News

County passes sales tax

Published: Tuesday, November 17, 2009 at 3:30 a.m.
Last Modified: Monday, November 16, 2009 at 10:57 p.m.

The Franklin County Commission approved a 1-cent sales tax increase at its Monday meeting, a tax meant to help fund the cash-strapped county and city school systems in their second year of statewide proration.

The 3-1 vote included Commissioners Stratt Byars, Howard Hutcheson and Greg Smith voting in favor of the increase and Commissioner Don Hastings voting in opposition.

The sales tax increase will begin Jan. 1, and, unless voted down by a county-wide referendum planned in June, would last two years.

The tax is expected to bring in $2 million annually, of which the county would receive 58.04 percent and city schools receive 41.96 percent.

The county will now have a sales tax of six cents - of which four cents go to the state and two cents go to the county. Franklin County cities add their own additional taxes that range from two cents in Phil Campbell to three cents in Russellville.

The county school system currently has a $3.5 million deficit from two years of state proration. The county school system also has borrowed $2.7 million from a $3 million credit line to make up for operational costs.

"Our job now is to get out and educate our citizens by June," said Superintendent Gary Williams after the commission meeting. Williams initiated the 1-cent sales tax increase proposal at a Nov. 9 work session when he presented the financial status of the school system, including the fact that the system had operational funds only until February.

Hastings, the sole no vote, said, "Let me make this clear, I am for education, I'm not against it." Hastings said, however, the majority of county residents who called him opposed the tax.

"It may hurt us in the long run," Hastings said.

The commission vote also came the morning before the Russellville City Council reviewed an economic study about the city's proposal of their own 1-cent sales tax increase. Councilman David Grissom commissioned the study from professors at the University of North Alabama. The council has deadlocked three times in the past two months over the proposed increase.

"(The superintendent) is going to have to sell it to the people," said Commissioner Stratt Byars.

"I don't want the tax as much as anyone else, but the school needs help," replied Commissioner Greg Smith.

Trevor Stokes can be reached at 740-5728 or trevor.stokes@TimesDaily.com.


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