Fairhope, Alabama
BY LEGISLATIVE ACT
The city council has passed a resolution asking the State Legislature to allow Wal Mart to be annexed into the city.
"Whereas the city council deems it wise, expedient, and economical to apply for the annexation of said territory to the corporate limits of the City of Fairhope, Alabama by the passage of a Local Law of the state legislature of Alabama."
Mayor Kant told the Times the reason for annexing is to make them (Wal Mart) "pay their fair share" of taxes. Currently, all businesses outside the city limits pay no city property tax and sales taxes are at 1/2 rate (by state law): 1% vs 2 % for those inside city limits; but receive full city services (police, fire) just like everyone else.
Council President Burrell said:"The council feels this will level the playing field for local businesses competing with Wal Mart for business. Wal Mart has been essentially receiving city services at discounted rates since they are well within the 'boundaries' of our city, although not technically in our city limits."
"The reason for the timing now is that the State Legislature only meets for a finite time every year ... we felt that time was of the essence ... to give our state representatives time to bring this to a vote."
Since its inception in 2009, some in-town businesses have complained the sales tax gives Wal Mart an unfair one-cent advantage; but those supporting the sales tax counter that without it Wal Mart would pay no city taxes at all -- and still receive full city services (police, fire).
Even so, according to data released in 2009, Wal Mart is still the number one contributor of sales taxes to city coffers -- with the Publix grocery number two.
Total sales taxes are projected to be about $5 million this year; probably considerably more if Wal Mart is annexed.
(Since Wal Mart has not requested to be annexed, an Act of the Legislature is required.)
The city council has passed a resolution asking the State Legislature to allow Wal Mart to be annexed into the city.
"Whereas the city council deems it wise, expedient, and economical to apply for the annexation of said territory to the corporate limits of the City of Fairhope, Alabama by the passage of a Local Law of the state legislature of Alabama."
Mayor Kant told the Times the reason for annexing is to make them (Wal Mart) "pay their fair share" of taxes. Currently, all businesses outside the city limits pay no city property tax and sales taxes are at 1/2 rate (by state law): 1% vs 2 % for those inside city limits; but receive full city services (police, fire) just like everyone else.
Council President Burrell said:"The council feels this will level the playing field for local businesses competing with Wal Mart for business. Wal Mart has been essentially receiving city services at discounted rates since they are well within the 'boundaries' of our city, although not technically in our city limits."
"The reason for the timing now is that the State Legislature only meets for a finite time every year ... we felt that time was of the essence ... to give our state representatives time to bring this to a vote."
Since its inception in 2009, some in-town businesses have complained the sales tax gives Wal Mart an unfair one-cent advantage; but those supporting the sales tax counter that without it Wal Mart would pay no city taxes at all -- and still receive full city services (police, fire).
Even so, according to data released in 2009, Wal Mart is still the number one contributor of sales taxes to city coffers -- with the Publix grocery number two.
Total sales taxes are projected to be about $5 million this year; probably considerably more if Wal Mart is annexed.
(Since Wal Mart has not requested to be annexed, an Act of the Legislature is required.)
Comments
Corporations don't pay taxes, people do. Walmart's customers will pay that 1% increase, not Walmart.
The person who commented on Point Clear is correct, but it's not just them. Many outside the city limits receive police and fire service. It should be noted, however, they do pay higher utility rates than those inside the city limits, aka voters.