Jackson Co. officials propose lowering auto sales tax - WAFF-TV: News, Weather and Sports for Huntsville, AL

Jackson Co. officials propose lowering auto sales tax

The plan would reduce city and county taxes on auto sales for two years. The plan would reduce city and county taxes on auto sales for two years.
JACKSON COUNTY, AL (WAFF) -

Two government bodies in Jackson County are considering a plan to lower automobile taxes. They admit the tax rate currently in position is higher than many surrounding counties, and believe it is hurting local dealerships.

The Scottsboro City Council and the Jackson County Commission are considering lowering their portion of the total tax paid by consumers when they purchase a vehicle in the county. Currently, buyers pay 4.5 percent. If approved, that amount would change to 3.1 percent.

While the state's two percent tax would remain unchanged, Jackson County is considering lowering their portion from one percent to 0.6 percent. Scottsboro is looking to reduce theirs by a full percentage point from 1.5 percent to 0.5 percent.

The proposed reduction in automobile sales tax would apply to both new and used car dealers. Both bodies created work sessions to discuss the data. Scottsboro Mayor Melton Potter believes it would only help the local economy and keep more sales at home.

"We think that by lowering the tax it will spur more sales and allow our dealers here in the county to be more competitive. Even though we're lowering the tax, we will look in turn to increase the business, which will in the long run give us more tax," Potter said.

If the reduction passes, it will not be permanent. The current language lets the tax reduction expire in two years, at which point officials said they will re-evaluate and see how well it did.

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