City to ask for tax hike to fund capital improvements
Published: February 20,2012
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.
To sign up for Mississippi Business Daily Updates, click here.
Twang & Tourism: The Country Music Trail
FOLLOW THE MBJ ON TWITTERMy Tweets
Top Posts & Pages
- Wasted away — Margaritaville in Biloxi to close by Sept. 19
- WILLOUGHBY: Broadband Voice founder Gary Watts isn’t afraid to take chances
- Severstal selling plants, including Severstal Columbus
- McDaniel alleges GOP race-baiting; says party should be 'purged'
- Two BancorpSouth mergers delayed by federal inquiries
- Mississippi Power conducts successful tests at Kemper plant
- Seafood dealer/processor guilty of illegal handling of oysters
- Police find Attorney General Hood's stolen handgun
- Medical transportation company opening operation/call center
- Chevron U.S.A.'s base oil facility begins production