Morgan City Council adopted a Local Option Transportation Sales Tax at last week’s meeting. The resolution states that Morgan City supports and imposition by the County Council for a .25% local option general sales tax that will be dedicated to transportation.
There are different options that were provided by the State transportation. These sections of different taxes are called “quarters” however Morgan County only meets the criteria to qualify for the fourth quarter. Although the state can authorize 5 different quarters instead of 4. For example, local city sales tax use 1% of taxes, but the state can authorize up to 1.25%.
City Recorder, Denise Woods said, “The fourth quarter is the only one that the City could possibly impose because of the criteria to be part of or have public transit.”
What this quarter’s criteria consists of is as follows: Under 59-12-2219 Morgan County can impose 0.25% of which 0.10% goes to the City and unincorporated County. Morgan City could expect to receive approximately $68, 488 annually and the remaining 0.15% to the county.
The Morgan City council supported the resolution of the sales tax for a transportation infrastructure as presented by the County Council and COG. As development in the city and county brings new growth and people moving into the area, a transportation infrastructure could be crucial in keeping roads safe and rated highly. Though Morgan doesn’t qualify for all the tax options to support roads and transportation, each 0.25% could potentially bring an annual amount of approximately $244,000 into the county for this use.
The discussion will continue at next week’s county council meeting with the City Manager addressing the council on Tuesday.