MOBILE, Ala. (WPMI) The city of Mobile is still facing major financial problems. The recently passed penny sales tax was supposed to help bring in more revenue. But it hasn't lived up to some lawmakers expectations.
Several business owners say they feel like the recently passed sales tax hurts business. They think people are traveling elsewhere to shop, in turn bringing in less revenue for the city.
At Tuesday's city council meeting, Finance Director Barbara Malkove announced that sales taxes collected by businesses in November were down half a million dollars from the previous year. That does not include the additional penny sales tax.
The city's general fund for the last three months of 2012 was down $5.8 million compared to 2011, and that's including the new tax.
Some city officials blame the shortfall on the nationwide growth on Internet sales. But councilman John Williams said it's time to take a step back and look closely at the issue.
"What I am going to do, and I know it will be supported by the council, is call for an immediate meeting of the finance committee. And it's important that we break it down and understand where the revenues were less than we expected. It is significant," Williams said.