By EMILY SPARACINO / Staff Writer

COLUMBIANA – Sales tax in Columbiana will increase by 1 cent starting Jan. 1.

In a 5-1 vote, the Columbiana City Council passed an ordinance Nov. 17 to increase the general sales tax from 8 to 9 cents per dollar, and to reduce the tax on automobiles and equipment.

“In reviewing our tax structures, we found out that on automobile sales and equipment sales, we were higher than all of these surrounding cities in the county, so we actually decreased that tax,” Mayor Stancil Handley said in a Nov. 20 phone interview. “The overall sales tax, we looked and we were in one of the only two cities in Shelby County that were still at the rate we were at. Everybody else has been at an overall rate of 9 cents on the dollar. We were still at 8.”

Ward 3 Councilman Ricky Ruston voted against the increase because he said he wanted to know what the funds generated from a higher sales tax would be used for in the city before voting on the ordinance.

“From a dollars and cents perspective, I think it makes a lot of sense for the city of Columbiana because it adds to the general fund to enable us to do some things,” Ruston said of the increase. “I think a community wants to know up front what our plans are to do with additional funds in raising those taxes.”

Handley said the increase was needed to help the city continue its level of services to the public.

“We have improved services, so to maintain that and to continue to move upwards, we needed an increase in revenue,” Handley said. “We want to continue to increase our standard of living. We felt like that since all the surrounding cities in the county are at 9 (cents per dollar) that we could do that, and we did.”

The council will hold a work session to discuss the sales tax increase and potential allocation of the funds on Tuesday, Nov. 24 at 6 p.m. at City Hall.

“I think the real concern is going to be what is this money going to be used for,” Handley said. “The council is going to discuss that. Some want to earmark some for a certain project. Personally, I’m against earmarking it. I would like it to go into general fund to be used as we need it to continue to upgrade services and city equipment.”

Ruston said he hopes the council will “go to the drawing board” and be able to identify for the residents what services or amenities their money is going toward.

“I think it’s a good thing for Columbiana, but my ultimate goal is I want to have a good plan in place to do that,” Ruston said. “We have a good council that’s in it for the betterment of the city. We’ll determine what’s best and put those funds to use.”