Dothan Sales Tax Increase gets Mixed Reaction

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Dothan sales tax revenue has been increasing for the last five years. News 4 went to find out if the city really needs a sales tax increase the mayor proposed Tuesday.

Owner of Northcutt Drugs on Main Street, Glenn Northcutt remembers when sales tax was three percent back in the 60's.

He hates the idea of more taxes but trusts our city officials to do what's right, “Cities have to compete like businesses compete and customers are smart and they compare other cities with each other and I’m in favor of it.”

Dothan city finance director Angela Palmer has seen the sales tax increase tremendously over the last several years.

But she says there are departments like leisure services and environmental services that are losing money because they don't bring in a profit.

Alabama cities like Mobile, Birmingham, and Decater already have nine percent sales tax.

Houston County gets one percent of the proposed increase.

County commission chairman Mark Culver doesn't think the sales tax increase will hurt the county, “We’re the regional hub for shopping and other services and it's not putting our city out of line with other cities.”

That's good news for Glenn Northcutt who has customers from Eufaula and Bainbridge, Georgia coming to buy from his store.

If approved, half of the sales tax will go toward community investment and the other will go toward the operating budget.