The Auburn City Council approved a 1 percent sales tax increase at a meeting Tuesday night after hearing from over 25 residents who argued against the increase.
The ordinance increased the city sales tax from 3 to 4 percent, bringing the combined rate to 9 percent, with state sales tax at 4 percent and Lee County sales tax at 1 percent.
The city sales tax will return to 3 percent if there in an increase in property tax to create the needed revenue.
The new combined rate is 1 percent higher than the state average, 8 percent.
The increased rate will take effect August 1.
Prior to the meeting, the Council was split on supporting the ordinance. Some argued it would only be a short term solution to a larger problem, while others said revenue was needed for upcoming projects and schools.
Mayor Bill Ham said the increase, anticipating a $7 million annual increase in revenue, will benefit economic developments, infrastructure improvements and the public school system.
Ham, along with fellow council members Arthur Dowdell, Dick Phelan, Robin Kelley, Tom Worden, Brent Beard and Gene Dulaney, voted in favor of the increase.
Council members Bob Norman and Sheila Eckman voted in opposition of the increase.
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