Council OKs 1% hike in sales tax
by James Phillips
Feb 14, 2013 | 1289 views | 0 0 comments | 6 6 recommendations | email to a friend | print
During a special called meeting Tuesday night, the Carbon Hill City Council passed a 1 percent sales tax increase.

The increase will up the city’s sales tax to 9 percent. The added tax is expected to increase the city’s revenue by $125,000 per year. Carbon Hill Mayor Pee Wee Richardson said the tax hike was necessary to improve the city’s finances.

“It will be a good thing,” he said. “It will at least give us something to work with.”

Richardson said 75 percent of the proceeds from the increase will go to the city’s general fund, while the remaining 25 percent will go to the garbage fund.

“We do garbage pickup two times per week in the city,” Richardson said. “We have to carry it to the landfill in Dora. That is a lot of fuel and expense. If we didn’t do the sales tax increase, we would have had to raise our garbage fees by $2.75 per month.”

A sales tax increase takes some of the burden off city residents, Richardson said.

“I wanted to keep the garbage rate at $9.75 per month. Our finances are so low that we had to do something, and I think this was our best choice.”

The tax increase didn’t passed 4 to 1. Council member Chris Pschirer voted against the increase.

In other action from the meeting, the council approved alcohol licenses for Millcreek Grocery and the Dawg House Bar and Grill.

The council’s next regular meeting is scheduled for Feb. 28.