Council Repeals One City Sales Tax

May 5th, 2003

The Mobile City Council voted unanimously to repeal the 2 percent tax on
goods sold to companies outside of Mobile County. The city's out-of-county
tax brings in about $2 million annually. The vote increased the cable
television franchise fee from 3 percent to 5 percent, which was expected to
raise about $500,000 to $750,000 each year. This fee increase is usually
passed onto the customer. Mayor Dow said additional funds will be needed
when changing from a gross receipts tax to a true sales tax. The city
likely will need to cut or find $4 million by the end of the fiscal year
because of revenue shortfalls.