HOOVER, Ala. (WIAT) — The Hoover City Council is taking another look at the mayor’s proposed tax increase and they’re making some changes.
Mayor Frank Brocato proposed to increase sales tax by one cent, making the local sales tax go from 3% to 4%. The council cut that to half a cent, but they are talking about raising taxes on other items.
“There are opinions on both sides and it’s not going to be a 7-0 vote,” said City Council President Gene Smith. “There’s going to be people that vote against, some if not all.”
Mayor Brocato is open to the council’s request to cut his proposed 1% sales tax increase in half.
“It’s not that I’m disappointed. I know we have an immediate need that needs to be addressed and the council I think realizes that as well,” said Mayor Brocato.
In addition to cutting the proposed sales tax increase in half, the city council added a lodging tax and personal rental property tax. Hotel taxes could go up 3%, making it 6% total, and the tax on renting or leasing a home would go up from 1% to 2%.
“I think as council members, we feel we should repair the hole in the budget with revenue and not create an excess of revenue for special projects,” Smith said.
The capital budget was a big topic in the conversation about the tax decision because the city’s findings show they are barely getting by.
“The capital budget was the largest part of the deficit we have within our current fiscal budget. We have very little money available,” Smith said. “We’re not able to replace police cars, fire trucks, anything of capital nature.”
The council changed the day they will vote to Tuesday, July 10. They say the date change was to accomodate the 4th of July holiday.