MAGNOLIA SPRINGS - During the August meeting, the Magnolia Springs town council voted unanimously to raise town sales tax by one percent. The increase in sales tax will go into effect on Nov. 1.

“Our budgets are typically about $470,000 a year,” Mayor Kim Koniar said. “We’ve got a lot of expenditures that we could have difficulty covering in the next year or two. One is the traffic light on Highway 98, we have traffic issues on [Magnolia Springs Highway] that have to be addressed, we have streets that need paving, we have drainage work that’s got to be done, we have a [new Town Hall] building we’re going to build so we can get out of renting, and people want us to develop the [schoolyard property]. All that’s costing money.”

The proposed increase was suggested to the council by the Finance Committee as they work to prepare the 20-21 budget. Currently, the town has a nine percent sales tax. The one percent increase will match the town to Foley, Gulf Shores, and Summerdale. Koniar said raising the town sales tax by one percent will bring approximately $80,000 revenue a year.

“This would bring increased revenue to this town which would help some expenses on things that need to be done, and support a rainy-day fund without going into the reserves,” she said.

For more information on Magnolia Springs, check out www.townofmagnoliasprings.org.