Title
OPPOSING SB31 (HB58) WHICH EXEMPTS PRESCRIPTION DRUG SALES FROM THE CALCULATION OF GROSS RECEIPTS BUSINESS LICENSES
Summary
Description of Topic: (who, what, where, when, why and how much)
Budgetary Impact:
Non-Capital Item:
____ Budgeted under account #_______________ (discussion item)
____ Not budgeted, requesting transfer of $__________ from Account #______________ to Account #_____________.
____ Not budgeted requiring increase to account #___________ in the amount of $____________.
Capital - Departmental
____ Budgeted under account #______________ for $___________ and described in budget as __________________________________.
Additional amount needed, if any: Increase in budget of $_____________ OR, transfer of $___________ from Account #____________ to Account #_______________
____ Not Budgeted - account #____________ requires budget increase of $_____________.
Capital Project - **THE PRE-PROJECT CHECKLIST AND BUDGET CHECKLIST MUST BE ATTACHED TO THIS FILE**
In current year Capital Projects Plan:
_____ Yes, planned amount $___________, requesting $_________ as total project estimate, including contingencies, under account #_________________
_____ No, requesting $___________ as total project estimate, including contingencies, under account #____________________
Body
WHEREAS, SB31 (HB58) exempts prescription drug sales from the calculation of gross receipts business licenses; and
WHEREAS, businesses that provide goods or services in the City take advantage of the financial and other benefits they receive from the municipality including, but not limited to, the use of city streets and roads and the potential use of police and fire protection services; and
WHEREAS, revenue collected from business license fees provides a crucial role in funding the increasing costs of providing essential services; and
WHEREAS, loss of revenue from the gross receipts licensing of prescription medications would currently cost the City of Foley upwards of $37,000 annually in general fund revenue; and
WHEREAS, the City Council does not believe that this legislation would create a tax savings or lower the drug costs to its citizens; and
WHEREAS, the City Council does believe that any reduction in business license fees will serve only to increase the profits of large pharmacies, with a minimal impact on smaller pharmacies; and
WHEREAS, legislatively carving out this type of business from the coverage of municipal licensing creates a fundamental unfairness to other businesses and is a slippery slope as other businesses and industries start to request similar legislative limitations on municipal license authority, which could potentially cost municipalities significant loss of revenue, thereby resulting in a potential for devastating effects on the quality of life of our citizens.
NOW THEREFORE BE IT RESOLVED that the City Council of the City of Foley, Alabama, as follows: That the Council of the City of Foley, for the reasons stated above, expresses its strong opposition to SB31 (HB58) or any other similar legislation that would further restrict a municipality's authority to properly license business that is transacted within the municipality.