Alex City Council passes sales tax increase - WSFA.com Montgomery Alabama news.

Alex City Council passes sales tax increase

(Source: WSFA 12 News) (Source: WSFA 12 News)
ALEXANDER CITY, AL (WSFA) -

A new half-cent sales tax increase is on the books in Alex City, and downtown business owner Amy Hill isn't exactly thrilled about it. Hill co-owns Cloud Nine.

"Alex City's economy was struggling anyway. I think this could be another reason why people will buy their goods and services elsewhere," Hill said.

The Alex City Council passed the new hike late last week to fund what the mayor believes are "much-needed road repairs."

Ruby Gaston on the other hand is pleased with the move.

"There've been times you wanted to not bounce as your driving along. There would be holes and some of the pavement would be gone," Gaston said.

Mayor Charles Shaw says no matter what side of the argument you're on, the cracks and potholes aren't going away. Although Shaw is in the middle of his first term, he tells WSFA 12 News it's been at least 20 years since major road work has been done to city streets.

"We've allocated $188,000 a year and that only got you two miles. We needed to do something," Shaw said.

The mayor estimated more than 150 miles of city streets need some kind of repair job. The new half-cent sales tax increase pushes the overall sales tax in Alex City to 9 percent.

Once the new tax goes into effect, the city will begin collecting a little more than $1 million a year for bad roads.

City leaders say they'll begin collecting revenues from the sales tax hike Nov. 1 with repairs beginning around April 1 of next year.

Copyright 2014 WSFA 12 News.  All rights reserved.

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