There is No City Sales Tax Increase

There is No City Sales Tax Increase: ANOTHER RUMOR NOT TRUE: In case you were told by someone at McDonald’s that the reason something costs more than it did, it is NOT due to the City raising the sales tax. Dickie Drake got calls from folks saying that they were told by McDonald’s that the City had raised the sales tax, but we have not done so. The City sales tax remains where it has been for many years. If you paid more for something at McDonald’s, it was either an error or they have had a price increase, not because of any tax increase.

MORE INFO ON THE ERRONEOUS “TAX INCREASE”: The city has had no tax increase. I have talked with the McDonald’s area manager, Mr. Gerald Nix, and he says they got a fax, supposedly from the State saying the City of Leeds was increasing the sales tax. I suspect the fax was a hoax or that McDonald’s has been hacked in some way. Mr. Nix said they will fix the problem. For info, by state law the City cannot increase the sales tax beyond the present level.

AND NOW, FOR THE REST OF THE STORY: Finally, got to the bottom of the “tax increase”. Our City Inspector, Brad Watson also talked to Mr. Nix, and found out that the fax they had received from the state was to inform them that the State would now be collecting the sales tax for the City. The fax was cut off after that statement. The fax did not say there would be a tax increase, but Mr. Nix thought that meant there would be so he called the company accountant. The accountant told him that, yes, there had been a 1% increase by the City. This was a mistake. The owners of the Leeds McDonald’s also own the Moody store and Moody did, in fact, have a 1% increase in sales tax, going from 9% to 10%. The accountant mistakenly told Mr. Nix that Leeds had gone up 1% when it was really Moody. At any rate our City inspector stayed on the phone with the McDonald’s operations manager until the problem was corrected in Leeds. Hopefully this solves the problem and answers the question as to how it happened.

~Mayor David Miller