City Of Auburn Ca

Council to consider tax increase June 21

A proposed 1 percent sales tax increase would hike the City of Auburn's sales tax to 9 percent on purchases within the city. Members of the Auburn City Council will listen to citizens' opinions about the proposed increase, which would generate some $7 million, at their next meeting on June 21.

Of that total, 4 percent goes to the state, 1 percent goes to Lee County, and the city gets the remaining 3 percent.

The increase would help pay for a new elementary school as Auburn City Schools' enrollment skyrockets, as well as ensuring the city does not cut back on services.

Those arguments aren't persuasive to everyone, however. One is local attorney Steve Benson,.

"I'm a supporter of the schools," he said. "But if our sales tax revenue is climbing back and our property tax is up over $4.5 million in three years, how much is enough?"

Auburn, like most cities in Alabama, gets a big chunk of its revenues from sales taxes, because the state has the second lowest property tax in the nation after Louisiana. Many states actually have a higher base sales tax�8.25 percent in California and 7 percent in Indiana, Mississippi, New Jersey, Rhode Island and Tennessee�but the sales tax rate in Alabama cities has steadily crept up because sales tax revenue is their only readily available source of income.

In the last year, 27 cities in the state have increased their sales tax, according to research by Charlie Duggan, Auburn city manager. The cities include Mobile, which now charges 10 percent sales on purchases, and Prattville, which charges 9.5 percent.

A 2010 report by the Tax Foundation showed two Alabama cities, Montgomery and Birmingham, as having the highest combined large-city sales tax rate in the country at 10 percent. Right behind them were four California cities.

Another study by Berwyn, Pa.-based Vertex Inc., which calculates sales tax rate for Internet sellers, shows that a bunch of smaller cities have even higher sales tax rates. Topping the list is Arab, Ala., with a rate of 12 percent. The requisite 4 percent goes to the state, 4 percent to Cullman County and 4 percent to Arab.

None of that sways Benson, however.

"Sales tax revenue is recovering from having been down in 2009," Benson said. "It appears revenue for the first few months of 2011 is up 6 percent.

10002 Brentwood Cir Auburn, CA 95603 – MLS# 11044677 | Bill Joyce ...

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