Insurance Tax Increase Approved

The Brandenburg City Council approved a increase to the city’s insurance tax fee during a special called meeting Monday (3/18) evening.

The council heard questions from four individuals regarding the only agenda item. The Council conducted discussion and the first reading of the ordinance amendment during their regular monthly meeting last week. The tax was imposed in August 31, 1984 and has not been adjusted until now. Last week city leaders voted to increase the tax fee from five percent to eight percent to generate an additional $165,000 into the city’s general fund to allow for steeping expenses related to city operations. A portion of the additional money would be placed into a new budget line item for projects within the city.

Mayor Ronnie Joyner said at both meetings the increase is needed to generate more funds for day to day operational costs and to have funds available to purchase items such police vehicles or make unexpected repairs with out having to reach in to the reserve funding.

The city council approved the increase on a 4 to 2 vote. The tax will be figured in the upcoming budget that begins on July 1. The tax will be on insurance premiums receipts collected by insurance companies.