Prattville sees increase in sales tax revenue - WSFA.com Montgomery Alabama news.

Prattville sees increase in sales tax revenue

PRATTVILLE, AL (WSFA) -

New sales tax revenues in Prattville show the city's tax collections are up 4.2 %, and local business owners say they've noticed the increase.

Connie Dismukes, who owns Fanci Free Boutique and Garden Cafe said, "The last couple of months were really good for us. We had a lot of new customers come in."

The extra revenue the city brings in is crucial as Mayor Bill Gillespie and council members work to get the city finances in order.

"It's just like any household. As extra the money comes in, that's when you can pay the bills," said Mayor Gillespie.

In fact, the Mayor says he'll have to ask the council Tuesday night for an additional $5 million dollars in the budget to take care of bridge loans the city owes.

"It's pretty much just a big accounting type of issue that, hopefully, once we get back to where we need to be, we won't have to be taking out these bridge loans," he added.

Mayor Gillespie says a strong sales tax base will help pay them off faster. He and city leaders hope this recent increase in sales and buyer confidence starts a trend, and so do local business owners.

"We are, like all towns, having a problem with our budget.  So with the sales tax going up and more people staying here and shopping locally, it's going to help us overall," Dismukes said.

The City of Montgomery also posted a 10.4 % increase in revenues for the month of April.  The May numbers will be available next month.

Copyright 2011 WSFA. All rights reserved.

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