| Some Constitutional reformers claim that the Alabama Constitution
prohibits citizens from increasing local taxes. How can they make this outlandish claim? Following is Madison County
Commission's efforts that will increase local property tax without constitutional amendments or votes. Support Citizens for Responsible Constitution
Reform. County approves new tax district Plan to encourage growth sent back to city council after amendments added By STEVE DOYLE Times Staff Writer The Madison County Commission on Friday approved a tax district surrounding Toyota's proposed truck engine plant in northwest Huntsville. But it won't take effect right away because commissioners added two amendments and shipped the plan back to the Huntsville City Council. No money can be spent until both sides agree on the details. That means the Huntsville school system will have to wait a while longer for $12 million it's due under the plan to spruce up several campuses in the northwest part of town. City officials hope to encourage growth along Jordan Lane, Bob Wade Lane and Pulaski Pike through a series of public investments, including money for schools, open space, a new fire station, a satellite public works office and a huge industrial park anchored by Toyota's engine factory. The plan calls for the city to spend a total of up to $41 million. Huntsville Planning Director Dallas Fanning says the city will borrow the money and pay itself back through growth in property taxes as the area becomes a more desirable place to live and work. The county commission, city council and Huntsville school board all have to funnel part of their property-tax receipts from the district toward repaying the debt. That could take up to 30 years. But Commissioner Mo Brooks had problems with the plan. He said city school taxes are supposed to be for education - not industrial parks and public works buildings. So he offered an amendment: school property taxes collected from the 5,600-acre district can be used only to pay back the educational part of the plan. That means the school system would be on the hook for a maximum of $12 million, plus interest. "I'm very hesitant about diverting school money that's badly needed for a public works and landscape management building," Brooks said. His amendment passed 5-1, with Dale Strong opposed. Brooks said the Huntsville school board may have felt it had to go along with the plan because the city contributes a lot of money to the system. This year, the city council is scheduled to give the system about $10.3 million from sales taxes. Fanning said the city didn't pressure school leaders. "The school system itself picked the (borrowing) number that was in their best interest," he said. "There wasn't any negotiation, and there wasn't any fear tactics." Commissioners added a second amendment after Brooks pointed out the plan allows the city to sell land in the North Huntsville Industrial Park and keep all the money. The amendment, which passed unanimously, says the city must share those profits with the county or use them to pay down the debt on the park. Brooks added a third option to satisfy City Attorney Peter Joffrion: The city can also use sales tax proceeds to expand the industrial park. Commissioners would have to OK any proposed land purchase. Brooks, a lawyer, said the amendments were just safeguards to make sure the county and the school system get the best possible deal. Fanning said commissioners might feel better if they were equal partners in the tax increment finance, or TIF, plan. "If it's a question of honesty, let's just make it a joint TIF to us and y'all," Fanning said. "We need to pursue it, in my view." Most commissioners said they support what the city's trying to do for an area that's struggled in recent years. Chairman Mike Gillespie, whose first job was at his grandparents' gas station on Pulaski Pike, called it "a good plan, a necessary plan." Commissioners have agreed to grade the industrial park site off Bob Wade Lane using tractors and bulldozers rented by the city. City officials say they expect the tax district to generate an additional $81 million in property tax revenue over 30 years as the land becomes more valuable through development. © The Huntsville Times |
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