Sales Tax News - October 6, 2017

Glencoe, AL

The Glencoe, Alabama, City Council approved a 1% sales tax increase this week, bringing it in-line with the neighboring city of Gadsden.  The increase brings the total sales tax to 10% in both municipalities; and applies to purchases made within the city limits.  Danny Wagnon, Mayor Pro Tem of Glencoe, explained that while the Council "considered all other options first", the rising rate of expenses over revenue necessitated the rate hike.  The increase will go into effect December 1, and is expected to bring the city nearly $250,000 of additional revenue.  According to Wagnon the increased revenue will go towards funding county-wide services and operations, as well as shoring up the gap between current revenue and salary and benefit costs; which along with insurance costs have continually outpaced the city's current revenue stream.

Carter County, OK

County Commissioners in Carter County, Oklahoma are urging residents to approve the renewal of two expiring sales tax measures in an October 10 special election.  The measures, set to expire in December, each comprise a quarter of a percent; one for technology and equipment for the county school districts, and one for bridge and road maintenance.  County Commissioner Jerry Alvord warns the quality of life could suffer if the tax increases are discontinued, as state funds dwindle.  While Alvord and other commissioners say they are prepared in the event the taxes are repealed, there is currently no plan in place to supplement the lost funds.

Pennsylvania

The Pennsylvania Liquor Control Board released Wednesday their unaudited calculations for fiscal year 16-17, showing record sales of $2.53 Billion.  This figure includes liquor sales and taxes, and represents an increase of $95.5 million in additional collections over the previous fiscal year, or 3.9%.  The windfall will greatly benefit the state of Pennsylvania, as $28.1 million will go to the PA State Police for liquor control enforcement, $9.1 million will be allocated to Philadelphia and Allegheny County sales taxes, $4.5 million in licensing fees returned to local municipalities, and $2.5 million to drug and alcohol programs.