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Opelika Council considers reducing occupational tax

BY STEVEN STIEFEL
FOR THE OBSERVER

OPELIKA — On Feb. 4, the Opelika City Council approved an amendment to reduce the occupational license fee rate from one and one-half percent to one percent of the gross receipts for work done or services performed or rendered within the city.
The occupational license fees provide funds for critical services and for the general operating expenses of the city. The fees ensure non-residents contributing to the local economy (commuters who work in the city but live elsewhere) help support the services they use. Municipalities generally view them as an equitable way to generate revenue from those who directly benefit from working in the community and the fees diversify how to pay for public safety, public works and other government programs rather than imposing higher property or sales taxes on Opelika residents.
The city said it feels able to lower the occupational license fee for workers due to effectively controlling its budget while also maintaining a healthy financial reserve to achieve a “sound financial position.” The change, if approved, would take effect on April 1, 2025, following advertising in the newspaper. For the amendment to pass at the Feb. 4 meeting, the Council had the option to suspend its rules. However, the vote needed to be unanimous.
“I just want to express my appreciation to the council, and especially to President [Eddie] Smith for your leadership on this.,” said Opelika Mayor Gary Fuller. “You know, we’ve had an occupational license fee since the early 60s…Then in the early 90s, the city council approved a 0.5% increase. I applaud you and I want to thank you for doing this. It’s going to mean a lot to the folks that work in the city.”

In other business, the council:

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