Tax could help fund complex
Published 12:00 am Saturday, December 20, 2008
NATCHEZ — A possible 1 percent sales tax increase might be just what Natchez needs to fund a recreation complex, Mayor Jake Middleton said.
The Mississippi Municipal League plans to present an initiative to the state legislature that would give municipalities the opportunity to impose the tax increase.
Part of that bill would require that all revenue accrued through the increase would go toward a major city project.
Middleton said if that bill passes, he would use the increase to fund the building of a recreation complex.
He said adding 1 percent to the existing 7 percent sales tax in Natchez, would generate approximately $900,000 a year.
And if the complex costs $6 million, it would take between seven and eight years to fund it completely through that tax, he said.
But Middleton said the city would not rely solely on the tax increase to fund the project.
“There may be some ways we could get financing through other means,” he said.
With a failing economy and fluctuating gas prices, Middleton said he realizes most residents’ gut reaction to a tax increase would be negative.
“It’s a penny on a dollar,” he said.
Ultimately, the ends will justify the means, he said.
A recreation complex would generate a lot of money for the city, Middleton said.
“It’s an economic development tool; there’s no doubt about it,” he said.
The benefits from having a complex would far outweigh a minor sales tax increase to get it, he said.
“I think it’s a piece of the pie you have to have in place in order for everything to work out,” Middleton said.