Russellville tax revenue drops by 9 percent

By Staff
Jonathan Willis
Russellville city council members are divided on what caused sales tax revenue in the city to drop 9.14 percent from January 2009 to January 2010.
City Councilman David Grissom attributes some of the decline to a one-cent increase in sales tax that went into effect in January.
The county commission implemented that increase which will generate revenue for both the county and city school systems. County voters will decide in June whether or not to keep the tax for two more years or to repeal it.
Franklin County received $276,200 in January sales tax compared to $161,504 in January 2009.
County officials had hoped the revenue would have doubled from last year. If that had held true, the county would have received $323,008.
Russellville Councilman Jeff Masterson said that he had checked with officials in other area towns and saw that most sales tax receipts were down.
Council members mentioned high utility costs and other weather-related expenses that may have caused shoppers to stay in a little more this year.
Councilman Gary Cummings, a local business owner, said that most all businesses felt the impact of slower sales.
Masterson said the true effect of the county’s tax increase was positive, however.
University of North Alabama economics professor Dr. Jim Couch said that a study he performed for the city last fall indicated that sales would decline if a tax increase was passed.
The study showed that a proposed doubling of sales tax would not lead to a doubling in revenue.
Cummings argued that although the county sales tax receipts were up, sales were actually down. If shoppers had spent as much as they did in 2009, the receipts would have been up 100 percent.
Taxable sales in the city dropped just over $900,000 from January 2009 to this year.
The city council voted three times last fall on whether or not to increase the city tax by one cent. All three times, the vote deadlocked 3-3.
After the county commission passed the one-cent increase in November, the city council moved forward with a budget that did not include a tax increase.

News

Ivey announces $500,000 grant to improve Red Bay water lines

Franklin County

PROGRESS 2024: Veteran Spotlight – Eric Reason

News

Community Spirit Bank welcomes new employee

News

Pilgrim’s sponsors Russellville Public Library summer reading program

Franklin County

First ‘Canada Phil’ visits Phil Campbell, adds sign to post

Features

National scholarship propels one Russellville student into Ivy League

Belgreen

Belgreen presents ‘Beauty and the Beast’

News

RCS Education Foundation holds annual banquet

Franklin County

Partnership Banquet highlights Franklin County accomplishments

News

50th Phil joins PC signpost

Franklin County

PROGRESS 2024: Veteran Spotlight – Jerry Fancher

News

RHS ranks 21/386 for Alabama high schools in U.S. News & World Report

News

RHS FLBA students compete at state

Galleries

RMS students perform ‘Aladdin’

Franklin County

PHOTOS: NWSCC Phil Campbell campus presents ‘Shrek the Musical’

News

Russellville Main Street welcomes new executive director

News

BTCPA announces final production of season

News

Wynette Grammy finds home at Red Bay Museum

Franklin County

Northwest Shoals receives $1.3M to enhance rural healthcare education

Galleries

PHOTOS: RHS Musical Theatre presents ‘The Wizard of Oz’

Franklin County

Northwest Regional Library announces audiobooks by mail program

Franklin County

Republican primary run-off election for county commission seats takes place April 16

News

Historic Roxy Theatre celebrates 75th Anniversary with upcoming entertainment

Franklin County

PROGRESS 2024: Veteran Spotlight – Mark Dunbar

x