Carbondale gives go ahead to sales tax increase - KFVS12 News & Weather Cape Girardeau, Carbondale, Poplar Bluff

Carbondale gives go ahead to sales tax increase

By Arnold Wyrick - bio | email

CARBONDALE, Il (KFVS) - Carbondale city leaders decided to raise sales taxes in order to erase a multi-million dollar deficit next year.

Tuesday night city council members debated the pros and cons of raising the city's sales tax, for more than an hour during their meeting.

Several residents also stood up and spoke in favor of the increase in taxes.

And in the end city leaders voted in favor of the half cent tax hike.  Which will raise the current 7.75% tax to 8.25%.

But, as Carbondale City Manager Allen Gill pointed out the city won't be seeing any of the new revenue anytime soon.

"The new rate won't go into affect until the new fiscal year and , that will be on July 1st 2010," Gill said.

"And the city won't receive it's first portion of the collected taxes until October 2010. So there may still have to be some adjustments to the budget next year," he added.

Current figures put the city in the red to the tune of $5.8 million in the next year.

One win for taxpayers in Carbondale, came when city leaders decided to continue with the current property tax abatement.  A move that saves property owners nearly $135 on every $100,000 their home is worth.

©2009 KFVS. All rights reserved.

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