By Gary Lloyd
The Clay City Council on Monday night scheduled an Aug. 12 public forum for the discussion of possible tax increases.
The meeting will be at Clay City Hall at 6:30 p.m.
The city is deciding whether or not it should raise its sales tax, implement a property tax, both or neither. The city currently has an 8 percent city sales tax and no property tax.
The Clay City Council could only vote for a five-mill property tax, which equates to $50 per year on a $100,000 home. Anything more than five mills would require a citizen vote.
City Manager Ronnie Dixon said the average home in Clay costs $120,000. There are 2,970 homes in Clay, he said.
Officials said the city currently brings in about $80,000 in revenue each month and expends roughly $75,000 to $76,000 per month. Council members seemed to agree that some sort of increase is needed.
Councilman Kevin Small said the council needs to “nail down very clearly” what the extra revenue would go toward. Mayor Charles Webster said possible extra revenue would be budgeted for large city improvements, such as two more sheriff’s deputies, school improvements and road improvements.
A one-cent sales tax increase could mean $500,00 more in revenue for the city, while a two-cent sales tax increase could mean $1 million more. A five-mill property tax could mean $1.5 million more in revenue for the city.
Webster said he and the council aren’t leaning one way or the other on what to potentially approve, though he said he “can see passing something.”
Contact Gary Lloyd at news@trussvilletribune.com and follow him on Twitter @GaryALloyd.