November 2023 was the first month Mobile collected sales tax from businesses in the newly annexed areas.
Last summer, parts of West Mobile voted to annex into city limits, making Mobile the second-largest city in the state.
An estimated $7 million additional dollars in sales tax revenue is expected to be gained each year due to the growth.
Executive director of finance Richard Moore has been watching every dollar closely since the additional revenue has been rolling in.
“We are still working with several businesses to get their taxes aligned and collected,” Moore told 1819 News. “November was the first month that revenue would have been collected from businesses in the newly annexed areas of the city, and our revenue team is still working with those businesses on this new process."
"By our estimation, the total amount of uncollected sales tax from the annexation area in November was $105,000," he continued. "We should see additional revenue from these areas in the coming months.”
City leaders said it was not uncommon to see the improper collection of taxes or issues remitting taxes when new taxes are implemented. Still, they hoped all those involved could clearly understand what is expected and trust the problems will soon be resolved.
The City created an annexation website with resources and contact information for residents and business owners who may have questions.
To connect with the author of this story or to comment, email erica.thomas@1819news.com.
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