PELHAM, Ala. (WIAT) – The City of Pelham is reworking its budget.
City leaders are considering raising sales tax by one cent to accommodate recent plans to start its own school system.
On Monday evening, city councilors heard from the public regarding the tax increase.
Attendees were divided on whether to increase the sales tax.
The next hearing on the proposed tax increase is set to be held August 5, 2013.
The tax is expected to generate about $5 million per year.
Pelham businesses currently collect 8 percent sales tax on all purchases.
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