November 1 is First Day of Collection For Mobile’s Penny Sales Tax

Oct 31st, 2012

Effective November 1, 2012, the sales tax rate for some businesses in the City of Mobile will go up by a penny. The penny increase was levied in an effort to allow the city to remain financially solvent during a downturn in the economy.

The city’s Revenue Department has mailed courtesy notices and tax forms to affected businesses, alerting them to the increase.

The following are the rates once the additional penny is collected:

City
General, Amusements, Vending, Lease - 5%
Automotive, Machine, Farm - 2.25%

Police Jurisdiction
General, Amusements, Vending, Lease - 2.5%
Automotive, Machine, Farm - 1.125%

Businesses may contact the City of Mobile Revenue Department at 251-208-7462 if they need assistance or have questions. Taxes are due to be remitted to the city by December 20, 2012. All payments will be posted and show up on the financials by mid January 2013.

* THIS TAX CHANGE DOES NOT INCLUDE FOOD & BEVERAGE, LODGING, MOTOR VEHICLE RENTAL, GASOLINE, WINE, OR TOBACCO TAX.

The total sales tax rate in the City of Mobile is now 10%. The additional penny sales tax is expected to generate $2.5 million per month.