Birmingham City Leaders Approve Sales Tax Increase

Birmingham city leaders approved a sweeping finance plan today that raises sales tax and boosts business license fees in the city.



The new revenues will pay for Mayor Larry Langford’s top priorities, including a domed stadium, street paving and public safety improvements.



The city's sales tax will go up by 1 cent, to a total of ten cents total.



Business license fees will be doubled.



The changes start January 1, 2008.



Larry Langford was emotional as city leaders lined up with enough support to push his two-part, multi-million-dollar finance plan through a council vote, this morning.



"And I just want to say, mister mayor, I am encouraged by your tenacity, but also by your vision and your willingness to make a sacrifice." said Steven Hoyt, Birmingham city councilor



"We’re going to work Birmingham and move us forward." Carol Duncan, Birmingham City Councilor



"So we open today a new era of leadership, a new way of doing business for the city of Birmingham,” said Carole Smitherman, Birmingham City Councilor



"Mister Mayor, I commend you and I commend this council for having the guts to stand up for once and do something and improve our neighborhoods and our communities, and help the people in the city of Birmingham,” said Miriam Witherspoon, Birmingham City Councilor but the council was not unanimous with their support.



"72-million dollars in new tax and fees, that's a lot of money and clearly from what we've discussed this morning, we don't have much information or plans on how we're going to spend the money except in broad categories," said Valerie Abbott, Birmingham City Councilor



"I think they realize that the time to move this city forward has come. We have sat back and procrastinated all this time, allowed outside entities to determine the future of the city, they are saying it's time to do something,” said Larry Langford, Birmingham Mayor



Langford said Tuesday's vote clears the way for decision making meetings with civic center managers.



He wants to talk plans, blue-prints and time-frame for construction.



He's also looking for state help, with infrastructure. A commitment he said governor Bob Riley made, contingent on a local funding source like the new tax and fee measure.



"Now that we have the funding for the dome and transit, through ADECA and a number of other agencies, the Alabama development office, the state, by a phone call from the governor can move to have streets paved, infrastructure put in, those kinds of things,” said Larry Langford, Birmingham Mayor



Langford wants a meeting with Riley within days to go over more details.



Calls past meetings and dome plans premature since they came ahead of funding.



"Now we're going to talk about the location of it. What actually is going to be inside of it, where are we going to place it. Who will actually be implementing the various aspects of getting it done.” Larry Langford, Birmingham mayor



Langford says the money will start rolling in by the end of the first quarter of next year



The business license fees will rake in 19-million dollars a year for a domed stadium, and millions more for transit system improvements.



The sales tax will ring up 40-million dollars a year, for police and fire improvements, street paving, neighborhood improvements, and possible a student scholarship program.