Flomaton votes to increase its sales tax

Citing falling revenue, including about a $100,000 per year drop in franchise fees from Alabama Power due to the shutdown of Air Products, the Flomaton Town Council voted Monday night to increase the local sales tax by one penny.

Councilman Jim Johnson told the council the additional penny will generate about $174,000 per year. The increase would raise the sales tax in Flomaton to 11 percent with the town receiving 5 percent, the state receiving 4 percent and county receiving 2 percent.

Flomaton will join East Brewton at a sales tax rate of 11 percent. Brewton and Atmore collect 10 percent.

At a previous council meeting, Johnson told fellow council members that they needed to begin thinking of ways to come up with the money the town has lost.

He showed the council figures on the Alabama Franchise fees that showed Flomaton receiving $206,090.66 in 2016 to $78,129.90 the town just received for 2020 after Air Products shut down.

Johnson also pointed out the town has lost Church's Chicken, NAPA and the Alabama Power appliance center that all collected sales tax.

“We've got to replace the money,” Johnson said. “This puts us back to where we used to be. If we don't do this, we're going to have to make cuts.”

Johnson also said he didn't see where the town could make cuts, noting the utilities department and police department are already understaffed.

He also said he felt a sales tax was a fair tax because people coming into Flomaton to purchase items are helping to fund the town.

“When everybody comes through here and spends money, they help us,” he said.

He also said the town has lost sales tax revenue due to COVID-19 with less traffic coming through town headed to the beach and said he didn't hear any complaints when the county raised the sales tax a penny several years ago.

Johnson said as a trade off, he'd like to see the town stop the automatic 3 percent annual increase in water and sewer rates., which would better help local residents.

“If anybody has a better plan, I'll throw mine away,” Johnson added.

Mayor Dewey Bondurant, Jr., said he estimates about 60 percent of the sales tax collected inside the Flomaton town limits is paid by people who don't live in Flomaton.

Councilwoman Lillian Dean then made the motion raise the sales tax by a penny and Johnson issued the second.

“God only requires a tithe of 10 percent, so I'm not going with this plan,” said Councilwoman Kay Wagner. “But I can't stop you from doing it.”

Dean said God asks for 10 percent for the church, not the town.

The council then voted 4-1 to raise the sales tax with Bondurant, Johnson, Dean and Roger Adkinson voting yes. Wagner voted no and Councilman Charlie Reardon was absent.