The penny sales tax that Mobile’s city council voted into law earlier this year will come into effect starting tomorrow. The tax increase brings Mobile’s sales tax to 10%. The increase is set to net the city an additional $2.5 million per month according to WKRG News 5. Prior to the passage of the tax increase, Mobile was facing a massive budget shortfall. The city council was forced to choose between sharp spending cuts, or the tax increase.
Spending cuts would have meant less police and firefighters on the streets. While a majority of the city council were initially against the tax increase, the measure eventually won out as the spending cuts were viewed as to harmful to the city. With Airbus coming, Austal expanding, and the future looking bright for Mobile, the council ultimately decided that now was not the time to cut back on city services.