The City of Greenville approved a temporary 1-cent sales tax increase on Monday, and some residents are not happy.
The increase, which expires after two years, is part of a deal recently announced by outgoing Mayor Dexter McLendon to bring in a new Chick-fil-A restaurant, something that has been in the negotiation phase for years, according to The Greenville Advocate. Additionally, as part of the incentive package, the city plans to purchase property on Interstate Drive, formerly occupied by a Shoney's, for $2 million and then sell it to Chick-fil-A for $1 million.
McClendon said the tax increase will help cover the loss on the land sale and pay for modifying the roads to accommodate more traffic.
"We'd be paying $2 million for the property. So then Chick-fil-A would pay a million back for the property, so we'd be out about a million," the mayor told the outlet. "But as soon as Chick-fil-A opened up and started selling their chicken, we would start getting the sales tax revenue from them."
Once it opens, possibly by late next year, he said the restaurant's projected annual sales of $6 million or more would allow the city to easily recoup its investment. However, some residents view the new "chicken tax" as another burden during tough economic times.
The city's decision has sparked a social media backlash and led to an online petition against the tax increase.
"In a time when economic uncertainty looms over so many of us here in Greenville, the recent 1% sales tax increase approved by the city council feels like an egregious decision," the petition page stated. "With over 26% of our population—our friends, neighbors, and family—already struggling beneath the poverty line, this additional financial burden is unacceptable. It will exacerbate food insecurity and make it even harder for residents to meet basic needs."
Other concerns include traffic congestion and competition with local businesses. The petition had 117 signees as of Saturday afternoon.
"If Chick-fil-A wants to come, great, but at whose expense?" a resident, who wished to remain anonymous, told 1819 News. "There are far more pressing issues in Greenville to address than spending money on this deal, but I guess when the city has a make-believe financial department and no city budget officer, it makes sense these ludicrous deals are being brought forth."
The petition is requesting the city council rescind the 1% sales tax increase.
"Instead of prioritizing commercial interests, our focus should be on creating sustainable economic policies that uplift everyone, particularly those in need," the petition continued. "There are alternatives to raising taxes, such as reviewing existing budget allocations, seeking federal or state assistance, or encouraging private investments that do not rely on exhausting the resources of those less fortunate."
The City of Greenville enacted a half-cent tax increase in 2017 to help fund the $2.5 million purchase of L. V. Stabler Memorial Hospital, according to WAKA 8. The hospital has since been renamed the Regional Medical Center of Central Alabama after joining the UAB medical system.
In May, McClendon announced that the hospital was struggling to meet its operational costs.
McClendon, a 25-year incumbent, lost reelection in September to city councilman Jae'ques Brown. Brown is set to be sworn in on Monday.
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