Home » NEWS » City to ask for tax hike to fund capital improvements

City to ask for tax hike to fund capital improvements

HOLLY SPRINGS — The city of Holly Springs will ask the Legislature to approve a local 1 cent sales tax with the proceeds supporting a large capital improvements program.

Mayor Andre DeBerry tells the South Reporter the levy would bring in about $171,428 a year.

DeBerry says the revenue would eventually produce $8 million to purchase equipment such as a town weather siren, heavy equipment for departments and police vehicles. The city also plans a new fire station.

Currently, the city collects a 2-cent tourism tax on restaurants and motels. It brings in about $130,000 a year with half going to fund tourism and the other half goes to retire debt on the Eddie Lee Smith Multi-Purpose Building.

DeBerry said cities are using these means to make their capital budgets because the property tax base brings in only enough revenue to pay for operational costs.

“This is not a Cadillac plan. Every city around us is doing capital improvement plans and we can do the same thing. We don’t have the funds to purchase equipment out of our operating budget.

“We’ve got to create our own opportunities to provide services and to grow this city,” DeBerry said.

BEFORE YOU GO…

… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.

If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.

Click for more info

About Megan Wright

Leave a Reply

Your email address will not be published. Required fields are marked *

*