Emily Featherston
Richard Pennino, who is set to purchase 2301 Old Columbiana Road, answers questions from the council.
The Vestavia Hills City Council took a position on a state legislature issue Monday night, passing a resolution to oppose Senate Bill 130 and House Bill 110, otherwise known as the updates to the “Simplified Sellers Use Tax” (SSUT).
The bills are amendments to the 2015 measures allowing sales taxes to be collected on online sales from retailers that have no physical location in the state. Sellers that participate in the SSUT voluntarily collect an 8 percent tax on goods purchased online but delivered to an Alabama address, and those funds are distributed between the state, county and municipality.
Bill sponsors, including Jefferson County Rep. Tod Scott, say that the changes are needed because of the changing landscape and growth of major online companies.
For example, Amazon recently purchased Whole Foods, and because there are physical Whole Foods locations in the state of Alabama, the law as-written would require Amazon to pay the regular tax rate.
The changes of the bill would create exemptions for companies like Amazon, allowing the online-retailer to continue under SSUT.
Mayor Ashley Curry said that the Alabama League of Municipalities contacted him and other mayors asking them to voice opposition to the bills, saying that cities would lose significant tax revenue if the law is changed. Curry said that State Sen. Jabo Waggoner has voiced his opposition to the bills.
Opponents argue that if Amazon is exempted, other companies that have major online presences but still have brick and mortar stores, such as Walmart, would “get around” the regular tax rate by staying under SSUT, costing municipalities in particular tax revenue.
The items are still in the committee phase of the state legislative process, and have support from both sides of the political aisle.
Curry, however, thinks that the vast majority of Alabama’s municipalities are against the measure.
“Overwhelmingly the mayors are opposed to this bill because of the impact of revenues to the city,” he said at the meeting.
The Council unanimously approved the resolution.
The council also approved the rezoning of 2301 Old Columbiana Road Monday night, taking the property from an institutional zoning to that of B-2 commercial status.
Currently the property is occupied by The Sports Medicine and Fitness Institute, but the organization operates as a nonprofit and is being sold to become a for-profit business.
The council approved the rezoning, but the ordinance had significant limitations on what type of business could be operated on the property, prohibiting a multitude of business types including gas stations, daycares, animal shelters, auto repair shops, convenience stores and more.
City Attorney Patrick Boone pointed out that the ordinance will not go into effect until the city receives a copy of the restrictive covenants that allow such a restrictive rezoning.
Finally, the council approved, with unanimous consent due to the immediacy of the issue, to purchase a new police vehicle for the Vestavia Hills Police Department.
Chief Dan Rary said that one of the department’s undercover vehicles was totaled in a pursuit that occurred in tandem with a U.S. Marshall’s investigation. The Council approved up to $40,000 for a new vehicle and all of the equipment needed to outfit it, and Rary said the items would be purchased from the state-approved bid list.
