Bill Would Require Tuscaloosa County Voters To Approve Any New Sales & Use Tax Increases

TUSCALOOSA, AL —A Tuscaloosa lawmaker has filed a proposed constitutional amendment that, if passed, would prohibit the levy of any additional sales and use tax in Tuscaloosa County unless approved by a majority vote of the electorate.

Click here to subscribe to our free daily newsletter and breaking news alerts.

Sponsored by State Sen. Gerald Allen, a Republican from Tuscaloosa, SB 188 was first introduced in the Senate on April 6 and referred to the chamber's Local Legislation Committee.

If signed into law, the amendment would require publication of notice of any such referendum and no less than two public hearings on any proposed sales and use tax increase ahead of a vote by the electorate in the municipality where any increases are being considered. It would also require that any referendum be placed on the General Election ballot, as opposed to allowing for a special election.

It's also worth noting that this amendment would not apply to lodging taxes, which are considered business privilege taxes.

The measure could pose major problems at the local level, especially considering sales tax initiatives such as Elevate Tuscaloosa and Northport First — both large-scale funding mechanisms made possible through the city councils in both cities approving 1-cent sales tax increases.

Elevate Tuscaloosa is a City of Tuscaloosa initiative approved in April 2019 that aims to invest $500 million over 30 years into numerous projects.

The revenue generated by the City of Tuscaloosa's added 1-cent sales tax revenue is used to promote the city's experience-based economy, while also funding education, arts, entertainment, parks, and transportation projects.

The most anticipated project under Elevate Tuscaloosa is the Saban Discovery Center — a planned STEM hub similar to the McWane Science Center in Birmingham. Overall, the center is expected to cost in excess of $100 million and is tentatively slated to open in the last quarter of 2026.

Across the river in Northport, the City Council in August 2019 also approved and implemented its own 1-cent sales tax increase, with the revenue dedicated to infrastructure, education and recreation.

If Allen's bill makes it to the governor's desk, it would present a major roadblock to the City of Northport in its push for its own school system. As Patch reported on Thursday, an initial incarnation of a financial feasibility study for the proposed city school system called for drastic increases in property taxes and additional increases in the city's sales and use taxes.

As seen with the failed property tax increase proposal in February, which was voted down with 80% of the electorate opposed, the likelihood of a similar referendum to fund a Northport school system is unlikely to fare any better.

Northport is also on the hook for several major recreation capital projects — projects that could see their progress and maintenance negatively impacted if the city finds itself in need of future supplemental funding, but is unable to raise its sales tax without approval from the electorate.

The Senate reconvened on Thursday at 9:30 a.m.

Have a news tip or suggestion on how I can improve Tuscaloosa Patch? Maybe you're interested in having your business become one of the latest sponsors for Tuscaloosa Patch? Email all inquiries to me at ryan.phillips@patch.com.