Montevallo proposes 1-cent raise of local sales and use tax

Published 9:46 am Tuesday, September 13, 2011


MONTEVALLO – The Montevallo City Council held its first reading of an ordinance increasing the general sales and use tax for the city of Montevallo from 3 to 4 percent during its city council meeting Sept. 12.

In 2009, “after a year of meetings and workshops with local residents, business owners, city officials and other area stakeholders, Montevallo completed its much anticipated Downtown Revitalization Master Plan,” Montevallo Mayor Ben McCrory wrote in a letter to the city council.

In order to fulfill the vision of the plan, McCrory said the first phase of the plan would cost $5 million. The council attempted to garner funds through representatives in Washington, with no positive results.

“The revitalization of our downtown business district, however, is critical not only to the well being of our current downtown businesses and property owners, but also to our city’s ability to attract new businesses and residents,” he wrote.

The additional percent of sales and use tax will generate about $400,000 in its first year, and will be “set aside specifically for the purposes of making capital investments in our city,” McCrory wrote.

Ninety percent of the tax will be allocated to the Montevallo Development Authority for capital improvements downtown and within in the city, and the remaining 10 percent will be given to the City of Montevallo’s Capital Reserve Fund for improvements at City Hall and other publicly owned facilities, capital equipment purchases, general capital improvement and other projects approved by the city council.

The final vote for the proposed 1-cent sales and use tax increase will be held Sept. 26 at 7 p.m. at City Hall. A public hearing will be held prior to the Sept. 26 city council meeting to give residents an option to comment. A copy of the proposed is available at City Hall for residents to review.