Archived Story

Use tax, sales tax not the same

Published 7:44pm Tuesday, March 15, 2011

The Tallapoosa County Commission will consider raising the use tax during its April meeting. The decision could affect schools and businesses in the county.

The county’s use tax is an excise tax charged to machinery and equipment purchased out of state, but brought back and used in the county, administrator Blake Beck said.

The county currently charges one-tenth of one percent as a use tax while the county’s sales tax stands at one percent.

“For whatever reason, in the mid-1980s the county decided to make the use tax one-tenth of one percent,” Beck said.

The commission will look into raising the tax to one percent, which “would bring use tax in line with sales tax,” which is similar to other counties and states.

“This is the first time I’ve not seen it fall in line with sales tax,” Beck said. “I’m not saying it doesn’t happen, I’ve just never seen it.”

A rise in the use tax would benefit the three school districts the county currently supports in Alexander City, Tallapoosa County and Tallassee.

An increase in the use tax would generate $266.000 for the Alexander City BOE, $232,000 for the Tallapoosa County BOE and $41,000 for the Tallassee BOE, Alexander City Superintendent Lou Ann Wagoner said.

At its regular meeting Tuesday, the commission decided to table a vote on the issue until its next meeting, which will be held April 11.