MOODY – The City Council unanimously adopted an ordinance Monday to amend the sales tax rate within the municipality and increase it by 1 cent.

The current sales tax rate is 9 percent (3 percent city, 4 percent state and 2 percent county). One percent of that 2 percent from the county is designated to the St. Clair County Board of Education.

Mayor Joe Lee said the city sales tax will increase to 4 percent starting March 1, bringing the total sales tax to 10 percent.

“We have done a lot of research in the last few months on our sales tax,” Lee said. “The last sales tax that was passed by the city of Moody was in 1991. At that time, it went from 7.5 percent to 9 percent.

“Everybody surrounding us at this time is at 10 percent. For us to continue the quality of life that we offer here in Moody, it is my recommendation that we pass this 1-cent sales tax to bring us in line with our adjoining neighbors.”

Lee said he had been asked if this increase was to balance the budget.

“It is not,” he said. “Our budget is balanced and is in place. This is to look at other projects within the city. One is partnering with the state to five-lane U.S. 411. There is another project at Kelly Creek Road to do some upgrades near Love’s.

“The city is looking at LED lighting throughout U.S. 411, Park Avenue and St. Clair 10. There are a lot of projects on the books, and if we are to do these projects, it will take a commitment by the City Council to put some means in place to do that.”

Lee said the increase in sales tax would generate $900,000 annually.

Contact Gary Hanner at ghanner@thestclairtimes.com.