Clay city council approves sales tax increase - WBRC FOX6 News - Birmingham, AL

Clay city council approves sales tax increase

Source: MGN Online Source: MGN Online

Clay's city council voted to approve a two-percent sales tax increase.

When state and county taxes are added, the total sales tax in Clay would come to 10 cents on the dollar.

City leaders have talked about raising the sales tax by two cents and creating a 5-mill city property tax. However, the council removed the property tax from the agenda. Currently, Clay residents don't pay any property tax to the city.

If both tax increases had been passed, they could have brought in a combined revenue of $2.5 million. City leaders expect the tax increase to generate $1 million a year.

"With the sales tax [residents] can choose to adjust their lifestyle in relation to their budget with the tax, but with the property tax there is nothing they can do to adjust that, so just feel like it's the most fair thing to do," councilor Kevin Small said.

"With the property tax if we did vote on it tonight, it would be another year before it ever went into effect. So it's not something like the sales tax would go into effect with in the next 60 days," Mayor Charles Webster said.

A third of the revenue from the sales tax will go toward hiring two more deputies to patrol the city and the remainder will go towards education and general fund spending.

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