Valley Head sales tax increase to go into effect April 1st

Valley Head sales tax increase to go into effect April 1st

(Tyler Pruett | Southern Torch)

By Tyler Pruett, Managing Editor

VALLEY HEAD, Ala. — On Sunday, April 1st, a 1 percent sales and use tax increase will go into effect for the Town of Valley Head. The Town Council passed the ordinance at the February meeting.

Valley Head Mayor Lamar Bray discussed the need for the increase:

"When we lost Shaw Industries, that was a huge loss, because of the TVA Power Money we received," said Bray. "At it's peak, (the TVA funding) was something over $125,000 a year. In Valley Head, we don't have a lot of businesses, and looking at other towns in the county they have raised their sales tax, and if we wanted to get some projects done, and we do, we have to look at a source of revenue."

Mayor Lamar Bray explained that while he doesn't like to earmark town funds towards one specific thing, the additional funding will help with road paving and repair.

"I don't like the term 'earmarked' because you never know when a sewer pump might go out, and ours did a while back. You have to kind of have a rainy day fund for things , but what we are hoping to do with this additional revenue is to pave at least one street a year. If we don't need those funds for something else, that's what we are looking at doing," explained Bray.

Bray related that the town will generate an additional $50,000.00 in revenue per year, estimated based on sales tax collected in previous years.

“No one likes to raise taxes, but with the shortfall of losing Shaw Industries, it became necessary to move forward. We hope to show our citizens that we are spending their tax dollars wisely, and they will see the improvements being made in their town,” concluded Bray.  

On March 15, the Alabama Department of Revenue sent out a letter to all, "persons, firms, and corporations making sales at retail and/or purchasing tangible personal property for use, storage, or other consumption in the Town of Valley Head, Alabama, and it's police jurisdiction."

The letter outlined the new tax rates:

On February 5, 2018, the governing body of the Town of Valley Head adopted Ordinance No. 2018-0205 levying a sales and use tax effective April 1, 2018. The tax levied by this ordinance is an amendment to the sales and use tax levied by Ordinance No. 2010-6-15. 

New Sales & Use Tax Rates: 

  • General Rate: 4%
  • Admissions to places of amusement and entertainment: 4%
  • Retail selling price of food for human consumption sold through vending machines: 4%
  • Net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products: 3% 
  • Machines, parts, and attachments for machines used in manufacturing tangible personal property: 3% 
  • Net difference paid for all automotive vehicles, truck trailers, semi-trailers, and house trailers: 3%
  • Withdrawal fee for automotive vehicle dealers only: $10.00

If sales are made and delivered to consumers, or purchases made for use, storage, or other consumption, outside the corporate limits of the Town of Valley Head, but within the police jurisdiction, the rates of sales and use tax are one-half the rates shown above.