The Mobile City Council voted unanimously to extend the so-called “penny tax” increase through 2028, as a way to continue providing approximately $36 million each year to finance capital improvement projects.
. Mobile’s overall sales tax rate is 10 percent .
“No one likes a tax,” he said. “That’s why we put in the sunset clause on it for five years. If it’s not satisfying to the public, they have their opportunity to assert their influence on the city council to say that we’re not getting the benefit out of it and to stop it. That was the sole reason to put in that sunset date.”For now, city officials are pleased with what the tax increase is doing.
Reynolds said he initially wanted the council to consider increasing the amount each council district was set to receive, from $3 million under the previous program to $5 million. He said that his district doesn’t benefit “as much” from the CDBG funding than it would from a direct appropriation to his district.“My priorities, which are resurfacing roads and fixing drainage issues, have existed for a long time,” Reynolds said.
Gregory said the city’s recent annexation of areas west of the city limits will also be vying for the revenue generated by the tax. She said residents in some of those areas, which have been annexed into her Council District 7, are asking for traffic control features like speed bumps and lighting.
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