Title
RESOLUTION OPPOSING HB 110 and SB 130
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, in 2015, the State of Alabama enacted the Simplified Seller Use Tax Remittance Act (SSUT) which allowed eligible sellers to voluntarily participate in a program in which they collect, report, and remit use taxes on sales made into Alabama that would otherwise be outside the City’s taxing authority; and,
WHEREAS, in recent years, online sales have dramatically increased resulting in a significant, adverse impact on local brick and mortar businesses located within the City of Foley and its police jurisdiction; and,
WHEREAS, as a result of the SSUT and the significant increase in online sales, use tax collections have drastically declined in recent years making it more difficult for the City to provide essential services such as police and fire protection, road resurfacing, solid waste collection and disposal, and other basic services; and,
WHEREAS, SSUT prohibits local taxation and utilizes a distribution formula that adversely impacts City of Foley and other municipalities; and,
WHEREAS, the Alabama legislature is currently considering two bills, namely House Bill 110 and Senate Bill 130, which would expand the availability of SSUT to businesses that currently owe local sales and use tax. If enacted, this legislation would have a significant, negative impact on the City of Foley in the following manner:
• Substantial revenue losses to the city, including currently budgeted funds.
• Loss of local Amazon tax sales.
• Deter customers from patronizing essentially all brick and mortar main street businesses, including but not limited to, hardware, clothing, furniture, auto parts, and sporting goods stores, that invest in our community and hire citizenry of the municipality.
• Override the local elected leaderships taxing authority.
• Negatively impact cities and counties who have a material portion of their economy supported by tourism and/or cities who have actively marketed and recruited the retail industry.
NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF FOLEY, ALABAMA, THAT: the City Council of the City of Foley, Alabama hereby opposes House Bill 110 (HB 110) and Senate Bill 130 (SB 130) and respectfully requests that its local delegation in the Alabama House and Senate vehemently oppose these bills.