State: Tax can be used for ‘any lawful purpose’
Published 12:00 am Saturday, October 30, 1999
FERRIDAY, La. – Proceeds of a 3/4-cent sales tax increase Ferriday voters passed Oct. 23 can be used by the town for any legal purpose, according to the Louisiana Bond Commission.
Earlier this week, Ferriday Councilman William Rucker said the town could only use the proceeds for its Police and Fire departments.
That, he said, was because town officials told the commission the money would be used only for those purposes.
But the tax proposition the commission passed said the money could be used for &uot;any lawful purpose,&uot;&160;Jeff Bernard, a debt analyst with the Bond Commission, confirmed Friday.
&uot;I hope that (police and fire) are still what we will decide to use the money for, because that’s where it’s needed,&uot;&160;Rucker said.
Needs include more police officers, an extra firefighter, a new fire truck and more training, he said.
The Louisiana Legislature passed a bill earlier this year to allow towns in Concordia and Tensas parishes to levy up to 1 cent in extra sales taxes.
In their testimony to legislators, Ferriday officials said the tax would be used for the Police and Fire departments for such things as equipment upgrades and training.
But Mayor Odeal Montgomery has long maintained that the town could use the money to upgrade any of its departments, although that would probably include police and fire improvements.
Montgomery has said that she and the Town Council will discuss in an upcoming meeting how the money will be spent.
The tax increase, which will take effect Jan. 1, will bring in an estimated $315,000 a year.
The town’s current sales tax rate is 9 percent.