Andalusia business owners question restaurant's tax rebate - WSFA.com Montgomery Alabama news.

Andalusia business owners question restaurant's tax rebate

ANDALUSIA, AL (WSFA) -

Several business owners in Andalusia showed up at the city council meeting Tuesday night to find out why one business is getting a tax break.

Businesses must pay a portion of the 9.5 percent sales tax they collect to the city, but Zaxby's has been given an exemption.

The Zaxby's franchise is the first one in the area and to lure the business there, city leaders agreed to give the owners a break on the portion of the sales tax they would normally pay to the city.

Business owners who do pay the required 2 percent sales tax are upset that Zaxby's has this deal.

Part of the confusion is the fact that the city council just passed a resolution to give Zaxby's the break Tuesday night even though the business has been open for a few months.

An amendment to the state constitution in 2003 that allows cities and counties to offer these kinds of tax break. In fact, if a business was founded before 2003 by law those businesses are not eligible for that kind of a tax break.

This is the fourth time the city of Andalusia has offered a new business the tax exemption to lure them to the area.

Copyright 2013 WSFA 12 News. All rights reserved.

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