Vinemont council considering half-cent sales tax increase
Published 5:00 am Thursday, November 11, 2021
- South Vinemont Mayor Reggie Dodson, from right, reads from the agenda during a November 2021 meeting, with Councilwomen Sonya Copeland and Bonnie Goodwin.
VINEMONT — The South Vinemont Town Council had the first reading Tuesday night of a half-cent sales tax increase that would bring the town to a nine-cent sales tax rate.
The revenue from the tax increase would go into the town’s general fund, where it could be used for any purpose that the council decides, said Mayor Reggie Dodson.
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To pass an ordinance, the council must have a first reading of the ordinance at one meeting and then vote for approval at a later meeting, or the council can suspend the rules with a unanimous vote and immediately consider the ordinance without having to wait until the following meeting.
A motion was made to suspend the rules and consider the ordinance immediately, but the vote failed after Councilwoman Sonya Copeland voted against it. Because the motion to suspend the rules failed, the ordinance will be on a future agenda for consideration.
Copeland said she voted against immediate consideration of the ordinance because town residents that she has spoken to have told her that they would support the tax if it was earmarked for a specific purpose.
“They’re not okay with it if it goes into the general fund,” she said.
Dodson said earmarking the tax revenue for a specific purpose would limit the funds to only that purpose, while sending the revenue into the town’s general fund would allow for more flexibility in how it is used.
“By putting it in the general fund, we can move it around as necessary in order to make the budget like it needs to be,” he said.
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Councilwoman Charlotte Cosper said she agreed that the funds should go into the general fund instead of being earmarked.
“I think it should be something that can be used for wherever it’s needed,” she said. “I don’t think it should have an exact purpose.”
Councilwoman Sonya Adams pointed out that the council recently set a spending limit for purchases that means any large expenditures have to come to the council for approval, so the council will have oversight on how the additional revenues are being spent.
Councilman Chris Thompson said he was in favor of the tax increase, and he believes the residents of South Vinemont will understand that the increase will be bringing the town in line with other Cullman County municipalities like Cullman or Good Hope.
“We are behind the times right now, we’re at 8.5 percent, so we need to be right where everybody else is,” he said.
Copeland said she believes the tax increase is a great idea to bring the town’s rate to nine percent, but she believes the town should have a set purpose for the revenue before approving the increase.
“I just think we should think about where it’s going to go other than just the general fund,” she said.
In other business, the council approved a one-time pay supplement of $1,200 for its four full-time employees after they did not receive a cost of living pay increase in the town’s 2021-2022 budget.