BY THE CITY OF OPELIKA
OPELIKA – The city of Opelika is proud to announce a historic reduction in the occupational tax rate, marking a significant moment in the city’s commitment to its citizens and economic growth. After 34 years at 1.5%, the city council has voted to lower the occupational tax back to its original rate of 1%, effective April 1, 2025.
The occupational tax was first introduced in the early 1960s when Uniroyal came to town, set at 1 percent by the then three-person city commission to fund essential services. In the early 1990s, the rate was increased to 1.5 percent by a new administration. Since then, the rate has remained unchanged, until now.
“Now is the ideal time to make this change,” said Mayor Gary Fuller. “Our city is in excellent financial condition. We have not incurred any new debt in several years, and we’ve been aggressive in building and renovating facilities without adding to our financial burden. Reducing the occupational tax puts money back into the pockets of our citizens while maintaining our ability to serve the community effectively.”
The decision follows much deliberation and analysis, led by City Council President Eddie Smith, the mayor, and the city council.
“This decision reflects our commitment to our residents and businesses,” said Council President Eddie Smith. “Thanks to careful financial planning and a strong local economy, we are confident that this tax reduction will benefit our community without compromising our future growth or services.”
Over the past few years, the city has made significant investments in infrastructure and community facilities, including a new Fire Headquarters, Fire Station 5, Police and Municipal Court building, Opelika Public Library, Covington Recreation Center renovations, and two new pools (one at Sportsplex and one at Covington). Remarkably, these projects were completed without incurring new debt. While the city does carry existing debt for projects like the Sportsplex, Opelika Power building, OHS renovations, and the new Fox Run School, the financial outlook remains robust.
The reduction in the occupational tax is expected to impact the city’s budget by approximately $6 million annually. However, with the 2025 fiscal year already underway, the primary impact will be felt in the second and third quarters, amounting to an estimated $3 million.
“We’ve spent years preparing for this moment,” Fuller said. “Our citizens deserve to reap the benefits of our city’s strong financial position. While we can’t predict the future, our experience and careful planning over the past two decades give us confidence that we can continue to grow and thrive.”
The city also has several large road projects on the horizon, and officials are confident that the tax reduction will not impact their ability to pursue these initiatives.
