Ashville’s 1-cent sales tax increase passes on 4-2 vote

Published 8:50 am Thursday, April 22, 2010

The City of Ashville ended up passing a one-cent sales tax increase on Monday, though the council originally thought that they would have to be unanimous in their decision.

The council went forward with the vote after a motion was put forth for it to give “immediate consideration” to the matter. The council voted 4-2 on the measure with Councilman David Thompson and Mayor Robert McKay saying that they wanted to take a closer look to see if it was necessary to increase the sales tax.

After City Clerk Bertha Wilson contacted the Alabama League of Municipalities Wednesday morning, it was confirmed that the vote would stand because the council voted on the decision after the immediate consideration motion.

Before the vote, during a public hearing attended by a handful of Ashville residents, Mayor McKay said that the recession has hit not only Ashville hard, but others as well. “Some cities are in worse shape,” he noted and said that the tax increase would bring the city in line with five others in the county that have a nine-cent sales tax. They are Argo, Moody, Odenville, Riverside and Springville. Pell City and Lincoln now have ten-cent sales tax ordinances and Pell City’s will go into effect June 1. Margaret, Ragland and Steele each have an eight-cent sales tax collected in their municipalities.

A lone Ashville resident, Walt Murray, voiced his opinion on the increase and said that he travels outside the city to other areas to buy things like gas and groceries. He noted that overall he saves more by comparison shopping and buying his groceries and gas where saved pennies help him save dollars overall.

Councilman Thompson noted that the city’s operations have increased each year. Mayor McKay said that 2009 was the third year that money hasn’t increased.

“We’re not getting the revenues we expected,” McKay said. “I’m not for an increase alone. I’ve fought this issue since I’ve been here, 22 years. I’m not really for this.”

Councilman Willie Turner countered by saying, “But we have to go up on something to balance (things) out… We’ve been in the red for a long time.”

Mr. Murray told the council “everyone has lost money” during the recession and finished his comments by saying that if he sees something good come out of it, then he would be in favor of the increase.

Mayor McKay said that without the town having a large, big box retailer like Wal-Mart, then the city is left to have its coffers filled by other businesses, who will likely feel the pinch from sales if it goes into effect. “There’s not one business owner who will want it,” he said.

Councilman Mike Sheffield said, “I don’t want it either… But if we don’t do it we’re looking at laying some people off. We won’t see an increase, but if we’re not going to do it, we would see a decrease in services offered (by the city).”

Councilman Charles Williams said that the city is struggling with maintaining its finances and employees and the only permanent fix is a revenue increase. “It’s not for a person… it’s for the city.”