Falkville Council opposes bill to remove tax on drugs
Falkville town council has gone on record as being opposed to a law under consideration in the State Legislature to exempt prescription drugs sales from the calculation of gross receipts business licenses.
The action was taken at a called meeting March 31 with the unanimous passage of Resolution R-1708.
Falkville’s opposition to SB31 and HB58 is one of many that will be brought to the attention of legislators by the Alabama League of Municipalities, according to Mayor Ken Winkles.
“Any county or municipal government that receives gross receipts tax from the retail sale of prescription medications would be adversely affected by this proposed legislation,” Winkles pointed out. “In our case, we’d lose revenue we’re currently receiving from
the pharmacy at Summerford Nursing Home and Rehab.”
Resolution R-1708 states: “Businesses that provide goods or services within the municipal corporate limits take advantage of the financial and other benefits they receive from the municipality including, but not limited to, the use of city streets and roads, the potential use of police and fire protection, and the potential use of ambulance and rescue services.
“Revenue collected from business licensing provides a financial means for defraying the costs of providing municipal services.
“Legislatively carving out this type of business from the coverage of municipal business licensing creates fundamental unfairness to other businesses and is a slippery slope as other businesses and industries start to request similar legislative limitations on municipal licensing authority which could potentially cost the municipality a significant loss in revenue thereby resulting in a potential for devastating effects on the quality of life of our citizens.”